South Korea’s exports reached an all-time monthly high in May, driven by soaring global demand for artificial intelligence (AI) semiconductors and data center infrastructure. The strong performance came despite mounting concerns over U.S. trade policies and geopolitical instability in the Middle East.
According to trade data released by the Ministry of Trade, Industry and Energy on June 1, South Korea’s exports rose 53.2% year-over-year to $87.75 billion in May, marking the highest monthly export figure on record.
Imports increased 20.8% to $60.8 billion, resulting in a trade surplus of $26.95 billion. Cumulative trade surplus for the January–May period reached $101.91 billion, already surpassing the previous annual record of $95.2 billion set in 2017.
Semiconductors were the primary driver behind the export surge.
Exports of semiconductors jumped 169.4% from a year earlier to $37.16 billion in May, setting another all-time monthly record. Semiconductor exports have now exceeded $30 billion for three consecutive months, reinforcing their role as the backbone of South Korea’s export growth.
Industry analysts attribute the surge largely to accelerating investments in AI infrastructure by global technology companies. Demand for high-bandwidth memory (HBM), server DRAM, and NAND flash storage has expanded sharply as hyperscale data center operators race to build next-generation AI computing platforms.
The strong performance of memory chip exports from Samsung Electronics and SK hynix has played a central role in supporting overall trade growth.
Growing demand for AI servers also boosted exports of storage devices and related hardware. Computer exports surged 290.7% year-over-year to $4.18 billion, driven primarily by rising shipments of solid-state drives (SSDs) used in AI data centers.
Other technology sectors also showed signs of recovery. Display exports increased 9.4% to $1.47 billion, while wireless communication devices, including smartphones and related equipment, rose 12.6% to $1.46 billion.
In contrast, automobile exports declined 5.9% to $5.83 billion. Industry observers cited a combination of factors, including supply disruptions caused by a domestic parts factory fire, logistical challenges linked to ongoing Middle East conflicts, and increased local production in the United States aimed at mitigating tariff risks.
Traditional manufacturing sectors also remained under pressure. Exports of steel and general machinery fell 2.1% and 6.3%, respectively, reflecting weaker momentum outside the technology sector.
By destination, exports to China, the United States, and Southeast Asia all posted strong gains.
Exports to China climbed 80.9% to $18.9 billion, extending growth for a seventh consecutive month as semiconductor shipments and consumer demand recovered. Exports to the United States rose 59.1% to $15.97 billion, supported by robust demand for semiconductors, computers, and electrical equipment.
Exports to the Association of Southeast Asian Nations (ASEAN) reached a record $15.85 billion, up 58.4% from a year earlier. Demand for semiconductors and electronic components in key manufacturing hubs such as Vietnam and Malaysia contributed significantly to the increase.
Imports also expanded amid rising energy costs. Crude oil imports increased 25% to $8.5 billion as global oil prices climbed following heightened tensions in the Middle East.
The government expects strong export momentum in AI-related industries to continue in the coming months.
“Exports have remained in positive territory for 12 consecutive months since the launch of the current administration,” said Trade Minister Kim Jeong-kwan. “Despite challenges such as higher energy prices caused by tensions in the Middle East, exports of semiconductors, AI-related IT products, cosmetics, and agricultural and fisheries goods maintained solid growth.”
With global AI investment showing little sign of slowing, industry experts believe semiconductors and AI infrastructure products will remain the key engines of South Korea’s export growth throughout the year.
