Exports hit milestone on chip demand

South Korea's exports topped $100 billion in a single month for the first time in June, becoming only the fourth country after Germany, China and the United States to achieve the milestone. With the semiconductor boom expected to persist through the second half of the year, the country is moving closer to another landmark: $1 trillion in annual exports.

Trade data released Wednesday by the Ministry of Trade, Industry and Energy showed exports surged 70.9% from a year earlier to a record $102.25 billion. The result eclipsed May's previous high of $87.8 billion, marking a second consecutive month of record-breaking exports. Average daily exports, adjusted for the number of working days, also reached a new high of $4.54 billion, up 59.5% from the same month last year.

Semiconductors once again powered the export boom. Chip exports nearly tripled from a year earlier, soaring 199.5% to $44.82 billion and exceeding $40 billion in a single month for the first time. The strength was not confined to semiconductors. Exports of other products rose 28%, with 18 of the country's 20 major export categories posting year-on-year gains. Shipments of automobiles, petroleum products, cosmetics and biopharmaceuticals each set new monthly records.

Only four countries have ever recorded more than $100 billion in exports in a single month: Germany, China, the United States and now South Korea. Germany reached the milestone first in 2006, followed by China and the United States the following year.

The June performance has also strengthened expectations that South Korea could become only the fourth nation to exceed $1 trillion in annual exports. Germany, China and the United States remain the only countries to have done so. Kang Gam-chan, deputy minister for trade and investment at the Ministry of Trade, Industry and Energy, said officials had already viewed the target as achievable after May's results, but June's figures made the outlook "much more promising."

Imports climbed 30.1% from a year earlier to $66.1 billion in June, leaving the country with a record monthly trade surplus of $36.15 billion. It was the first time South Korea's monthly trade surplus had exceeded $30 billion.

Despite the export boom, the sluggish pace of the domestic recovery remains a concern. The gains have been driven largely by semiconductors and a handful of other export industries, while consumer spending and construction have yet to regain momentum.

Lee Taek-geun, a research fellow at the Hyundai Research Institute, warned that if the gap between exports and domestic demand continues to widen, an external shock such as the end of the semiconductor supercycle could tip the economy into a downturn. He said policymakers should move quickly to stimulate construction, create more jobs for young people and step up investment in artificial intelligence infrastructure.


세종=정순구 기자 soon9@donga.com