Semiconductor surge lifts South Korean exports

South Korea recorded its highest-ever export figures in 2025, driven largely by surging global demand for semiconductors used in AI technologies. Official data shows total exports exceeded $700 billion, marking a year-on-year increase despite ongoing trade pressures and economic uncertainty.

The semiconductor sector led the growth, with exports reaching a record $173.4 billion, up more than 20 per cent from the previous year. Strong demand for high-value memory chips used in AI data centres pushed shipments higher throughout the year, including a sharp rise in December that capped ten consecutive months of growth.

South Korea’s dominance in the chip market is underpinned by global leaders such as Samsung Electronics and SK Hynix, both key suppliers to the AI industry. The government is also doubling down on the sector, with President Lee Jae Myung pledging to triple national spending on AI in a bid to position the country among the world’s top AI powers.

Other export sectors also posted strong results. Car exports climbed to a record $72 billion, while agriculture and cosmetics benefited from sustained global interest in South Korean food, beauty products, and pop culture. These gains helped offset weaker shipments to the United States and China.

Exports to those two major partners declined amid tariffs on steel, automobiles, and machinery, although Seoul secured a reduced US tariff rate late in the year. While officials hailed the export record as a sign of economic resilience, they cautioned that global trade uncertainty and the durability of semiconductor demand could pose challenges ahead.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!