South Korean exports grew by a record 53.2% in May 2025, reaching an all-time high of US$87.75 billion, fueled by unprecedented demand for semiconductors due to global AI investments. The surge, the strongest in over four decades, has widened the trade surplus to a historic US$26.95 billion and propelled the Kospi stock index to new records. While chip and computer exports soared, automobile output faced headwinds from supply disruptions and tariffs. Strong growth to key markets like the US and China and robust factory activity signal sustained economic momentum.
South Korea 's exports surged 53.2% year-on-year in May to a record US$87.75 billion, the strongest annual growth rate in over four decades, driven by a global AI investment boom fueling record chip sales.
The data, released on June 1, 2025, marked the 12th consecutive month of year-on-year export growth and propelled the nation's trade surplus to an all-time high of US$26.95 billion. Economists highlighted the unprecedented pace, with Meritz Securities' Stephen Lee forecasting around 50% export growth for the full year and an economic growth rate above 2.6% for 2026.
This robust performance follows the central bank's recent upward revision of its 2025 growth forecast to 2.6% from 2.0%, after the economy posted its strongest quarterly growth in nearly six years. The news further boosted market sentiment, with the benchmark Kospi stock index rising over 2% to a new record high.
The index, already the world's best performer this year with a gain exceeding 100%, is led by chipmakers Samsung Electronics and SK Hynix amid soaring memory chip prices and profits. The export boom is largely attributed to a surge in semiconductor shipments, which jumped 169.4% to a record monthly high of US$37.16 billion. This was propelled by rising memory chip prices due to heavy investment by US technology firms in AI infrastructure.
Computer exports also skyrocketed 290.7% on strong demand for AI servers, while petroleum products climbed 46.6% on elevated oil prices. Conversely, automobile exports declined 5.9%, pressured by supply disruptions from the Middle East conflict and the impact of US tariffs. Regionally, exports to the United States grew 59.1% and shipments to China surged 80.9%, while those to the Middle East fell 7.7%.
Import growth was more moderate, rising 20.8% to US$60.80 billion, slightly below the median forecast but still the strongest increase since August 2022. The widening trade surplus underscores the scale of the export-led expansion. The data also revealed that South Korea's factory activity expanded in May at its fastest pace in over five years, as manufacturers increased stock building in anticipation of prolonged Middle East tensions.
These combined indicators point to a resilient and dynamic trade-driven economy, heavily buoyed by the global technology investment cycle, particularly in artificial intelligence and memory semiconductors. The momentum has significantly reinforced investor confidence, solidifying the Kospi's historic rally and underpinning optimistic outlooks for both corporate earnings and macroeconomic stability throughout 2025 and into 2026
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