South Korea July exports beat forecasts on robust demand for AI investments

SEOUL: South Korea’s exports grew more strongly than expected in July on global chip and computer demand for AI investments.

Exports from Asia’s fourth-largest economy rose 62.8percent in July from a year earlier to USD98.89 billion, preliminary trade data showed on Saturday, beating a median 59.0percent increase tipped in a Reuters poll of economists.

It was weaker than the 70.7percent surge in June, which was the largest since 1978, but it was still the second-strongest annual growth rate in a streak that started in June 2025.

Semiconductor exports jumped 179percent as memory chip prices continued to rise despite the issues of Apple’s potential use of Chinese memory chips and a new AI development in China, the trade ministry said in a statement.

Computer sales also surged 404percent on increasing AI investments by big US technology firms, the ministry said. Last month, the country’s stock benchmark KOSPI tumbled 22percent, the biggest drop since 2008 and a sharp sell-off on AI-related worries. The index posted a record rally on Friday, however, on a fresh surge of investment into global semiconductor stocks.

Earlier this week, chipmaker Samsung Electronics reported a more than 250-fold jump in chip profit and announced multi-year supply deals with major data centre operators, saying it expects global chip shortages to become more acute and extend into 2028.

That came a day after peer chipmaker SK Hynix reported bumper quarterly results but fell short of lofty investor expectations, heightening market concerns about slower AI spending by big tech firms. By destination, exports to China in July rose 96percent, while those to the US gained 69percent.

Shipments to the Middle East increased 25percent, after five consecutive months of declines amid the Iran war.

Imports rose 26.5percent to USD68.56 billion in July, after rising 30.0percent in June. That was roughly in line with the 26.6percent forecast by economists.