Korea on track to become fourth country to hit $1 trillion in annual exports

Freight containers fill the Port of Busan on Sept. 1, 2026. (Yonhap)

South Korea’s exports once again approached the US$100 billion mark in August, driven by record semiconductor shipments of nearly US$46.7 billion. Cumulative exports through August reached US$693.3 billion, putting the country on track to potentially surpass US$1 trillion in annual exports for the first time.If the current trend continues, Korea could become the fourth country, after Germany, the United States and China, to record more than US$1 trillion in annual exports. The Ministry of Trade, Industry and Resources has previously said that while international oil prices remain a key variable, the concentration of exports in the second half of the year means the US$1 trillion target is still within reach.The ministry announced on Tuesday that exports totaled US$98.25 billion in August, up 68.7% from the same month a year earlier. It was the third-highest monthly export figure on record. The top three monthly records have been set in successive months this year: US$102 billion in June, US$99 billion in July and US$98.25 billion in August.Exports increased in seven of Korea’s nine major export markets. Shipments to China rose 119% year on year to US$24.1 billion, while exports to ASEAN countries climbed 75% to US$19.09 billion. Exports to the US increased 89.3% to US$16.5 billion, while those to the European Union rose 14.6% to US$6.62 billion.Exports to Latin America reached US$2.9 billion, up 25%, while shipments to Japan rose 13% to US$2.7 billion and those to India increased 47% to US$2.3 billion. Exports to the Middle East, however, fell 15% to US$1.19 billion, while shipments to the Commonwealth of Independent States declined 25% to US$800 million.The strong performance in the four largest export markets was largely driven by triple-digit growth in semiconductor exports. Exports to the Middle East, which had recently returned to growth, were hit by renewed geopolitical risks, resulting in a sharp decline in automobile shipments.Semiconductor exports continued to benefit from rising prices amid excess demand for memory chips. Shipments soared 209% from US$15.1 billion a year earlier to a record US$46.65 billion in August.The figure easily surpassed the previous monthly records of US$44.8 billion in June and US$41 billion in July.The ministry attributed the record performance to sustained demand for artificial intelligence infrastructure, as hyperscalers such as Google and Amazon continued to expand capital investment.Prices for DRAM DDR4 8Gb chips have also surged. The average fixed price stood at around US$25 last month, compared with US$5.30 in the third quarter of last year, according to the ministry.Semiconductor exports have maintained a steep upward trajectory this year, rising from US$25.1 billion in February to US$32.8 billion in March, US$37.2 billion in May, US$44.8 billion in June and US$46.7 billion in August.Imports rose 22.5% year on year to US$63.51 billion in August, leaving Korea with a trade surplus of US$34.75 billion.The surplus was US$28.34 billion larger than a year earlier and marked the third consecutive month in which the monthly trade surplus exceeded US$30 billion.For the January-August period, Korea recorded a cumulative trade surplus of US$202.5 billion, an increase of US$162.2 billion from the same period last year.Trade Minister Kim Jung-kwan said the continued strength of semiconductor exports was encouraging, but also pointed to the broadening of growth across other export sectors.“The strong performance in semiconductors, combined with 20 percent growth in non-semiconductor items, is a positive sign that Korea’s export base is broadening,” Kim said.He added that the ministry would closely monitor the impact on Korean exporters of changes in the global trade environment, including stronger protectionism in major economies such as US tariff policies, the restructuring of global supply chains and developments in the Middle East.By Kim Nam-il, senior staff writerPlease direct questions or comments to [english@hani.co.kr]