South Korea Nears $1 Trillion in Annual Exports as Chip Sales Nearly Triple

South Korea's exports nearly doubled in October, rising 93.7% from a year earlier to $115.28 billion, as booming demand for artificial intelligence hardware lifted semiconductor shipments to unprecedented levels, according to trade data released Sunday by the Ministry of Trade, Industry and Energy. The increase was the sharpest since January 1974.

Semiconductor exports jumped 259.4% from a year earlier to $56.44 billion, accounting for nearly half of everything the country shipped abroad. It was the second consecutive month in which chip exports exceeded $50 billion, with prices and volumes staying high as large technology companies kept spending heavily on facilities to compete for leadership in artificial intelligence.

October was the second month in a row in which monthly shipments topped $110 billion, and the total was the second-largest ever recorded for a single month, behind only September's $121.1 billion. Computer exports surged nearly 497% to $5.85 billion on growing server demand for AI services, while automobile exports reached $6.55 billion.

Cumulative exports for January through October reached $930 billion, up 60.6% from the same period last year and the first time the ten-month total has passed $900 billion. Only about $70 billion now separates the country from $1 trillion in annual exports, a milestone reached so far only by the United States, China, and Germany.

Trade Minister Kim Jung-kwan said it is becoming certain that annual exports of $1 trillion will be reached within November. Analysts say the semiconductor boom is expected to continue into next year, with some projections putting full-year exports above $1.1 trillion.