South Korea Q1 exports hit record high, eyes No. 5 global rank

South Korea’s exports surged to a record high in the first quarter, fueled by a sharp rise in semiconductor sales, the Industry Ministry said Wednesday, raising expectations that the country could climb to fifth place in global export rankings if the current momentum continues.

Exports for the January-March period jumped 37.8 percent on-year to $219.9 billion, marking the highest-ever export figure for a first quarter, according to the Ministry of Trade, Industry and Resources. The previous record was $173.4 billion, set in the first quarter of 2022.

The surge in exports was largely powered by the semiconductor sector.

Outbound chip shipments skyrocketed 138 percent on-year to $78.5 billion in the first quarter amid robust memory prices and growing investments in artificial intelligence servers.

DRAM exports surged 249.1 percent to $35.79 billion, while NAND flash exports jumped 377.5 percent to $5.39 billion. System semiconductor exports also rose 13.5 percent to $12.11 billion.

The strong momentum continued into April, with semiconductor exports reaching $31.9 billion, according to data released earlier this month.

South Korea also ranked fifth globally for the first time in exports during the January-February period under WTO data, the ministry said.

China held its position as the globe's top exporter, shipping $656.6 billion worth of goods — a 21.8 percent increase on-year. The US came in second at $381.4 billion, followed by Germany at $298.4 billion and the Netherlands at $159.8 billion. South Korea claimed fifth place with $133.2 billion in exports, edging out Japan at $120.3 billion and Italy at $118.3 billion.

While the official WTO data for March has yet to be finalized, South Korea is widely expected to claim the fifth spot in the first quarter, outperforming Japan.

Among other sectors, automobile exports came to $17.2 billion in the first quarter, down 0.3 percent from a year earlier. While truck shipments rose 63.9 percent to $710 million, passenger vehicles slipped 2.2 percent to $16.3 billion and van exports fell 31.7 percent to $70 million.

The bio-health sector saw exports grow 9.6 percent to $4.2 billion, with pharmaceuticals leading the way at an 11.9 percent increase to $2.73 billion, while medical device shipments rose 5.5 percent to reach $1.47 billion.

Battery shipments rose 9.9 percent to $1.96 billion, supported by higher lithium prices and new product launches, while electrical equipment exports gained 2.5 percent to $4.05 billion on continued global demand for transformers and power cables tied to grid investment.

Consumer goods exports continued to perform strongly, buoyed by the worldwide popularity of Korean culture. Cosmetics shipments jumped 21.5 percent to $3.13 billion, while agricultural and fisheries food exports rose 7.4 percent to $3.11 billion, amid growing global demand for Korean food products.

Imports increased 10.9 percent on-year to $169.4 billion, while the country posted a trade surplus of $50.4 billion, improving by $43.7 billion from a year earlier.