SEOUL: Official data reveals South Korea achieved its highest January exports ever, reaching US$65.8 billion, a 33.9 percent increase from the previous year. This milestone, surpassing the US$60 billion mark for the first time in January, stems from surging global demand for artificial intelligence (AI) technologies powered by the nation’s advanced chips.
Chip Sector Leads the Surge
South Korea, home to leading memory chip producers like Samsung and SK Hynix, plays a pivotal role in AI infrastructure. Both companies reported record quarterly operating profits for the October-December period. Semiconductor exports alone hit US$20.5 billion, marking a 102.7 percent year-on-year rise and the second-highest monthly figure on record. The peak was set in December with US$20.8 billion in chip shipments.
Automobile exports also rose sharply, climbing 21.7 percent to US$6 billion, driven by strong sales of hybrid and electric vehicles.
Trade Tensions with the United States
These gains occur amid efforts by Seoul to address new U.S. tariffs. President Donald Trump recently announced an increase in tariffs on South Korean goods from 15 percent to 25 percent, citing the South Korean legislature’s failure to ratify a recent trade agreement.
In October, Seoul and Washington reached a deal where South Korea committed to U.S. investments in exchange for the tariff reduction from 25 percent to 15 percent. However, South Korea’s presidential office maintains that the agreement is a memorandum of understanding, not requiring parliamentary approval.
Trade and Industry Minister Kim Jung-kwan met U.S. counterpart Howard Lutnick in Washington after the tariff hike and returned to Seoul on Saturday. At the airport, Kim told reporters, “There was considerable disappointment over the fact that the special bill remains pending in the National Assembly.” He added that discussions will continue.
