South Korea posted a record $700 billion in exports for 2025

South Korea posted a record $700 billion in exports for 2025, led by a surge in semiconductor shipments driven by global AI demand; semiconductor exports alone reached about $173.4 billion.

Seoul reported on Thursday that total exports for 2025 topped $700 billion, marking the highest annual figure in the country’s history and reflecting a strong global appetite for semiconductors tied to artificial intelligence applications. Government trade data showed exports rose 3.8 percent from the previous year, a performance officials described as evidence of the economy’s resilience amid difficult external conditions.

The Ministry of Trade, Industry and Energy attributed the milestone largely to a semiconductor boom. Semiconductor exports reached $173.4 billion in 2025, a record and an increase of more than 20 percent year‑on‑year, driven by demand for high‑priced memory chips used in AI data centres and cloud infrastructure. December alone saw semiconductor shipments surge, with monthly exports up by more than 40 percent year‑on‑year, marking the tenth consecutive month of gains and the highest monthly figure on record.

Industry heavyweights Samsung Electronics and SK hynix were cited as central to the gains, supplying memory and other chips that underpin generative AI models and large‑scale data processing. Analysts said the spike in demand for AI‑optimised memory and server components has reshaped short‑term trade dynamics, lifting South Korea’s export profile even as other markets cooled.

Automotive exports also contributed to the record, with auto shipments rising to $72 billion, another all‑time high despite tariff pressures and trade frictions with major partners. Other sectors — including cosmetics, agriculture and cultural exports tied to K‑pop and entertainment — posted strong results, helping broaden the export base beyond electronics and autos.

Industry minister Kim Jung‑kwan framed the result as a hard‑won achievement. “The new record was achieved amid challenging domestic and external conditions,” he said, adding that the figures “serve as an indicator of the South Korean economy’s solid resilience and growth potential,” while cautioning that export conditions in 2026 remain uncertain, particularly regarding the sustainability of semiconductor demand.

Economic commentators noted that while the headline figure surpasses previous records, the composition of growth raises policy questions. A Yonhap analysis highlighted that accumulated exports through November had already reached $640.2 billion, setting expectations that the annual total would exceed $700 billion — a projection borne out by the final data — but warned of risks from foreign‑exchange volatility, protectionist measures and intensifying competition from Chinese manufacturers.

Market watchers said the government’s pledge to increase AI investment — including a presidential commitment to triple AI spending — could further entrench South Korea’s role in the global AI supply chain, but they urged diversification and caution against overreliance on cyclical chip demand.

As Seoul celebrates a record export year, officials and industry leaders face the twin tasks of sustaining momentum and preparing for a potentially more volatile global trade environment in 2026.