South Korea is among the beneficiaries of the growing demand for semiconductors as AI continues to take shape globally. The country has set new records, with exports surging by more than 40% in early February.
South Korea’s exports soared to new heights in early February following the unprecedented surge in semiconductor demand worldwide. Data from the Korea Customs Service shows that the Asian country’s exports surged by 44.4% year-over-year in early February (the first 10 days of the month) to reach $21.4 billion.
These figures represent the highest performance ever recorded in that period. During this period, the number of operating days (7.5 days) was 0.5 days longer than last year, resulting in a 34.8% increase in the mean daily export value.
AI boom boosts semiconductor demand, driving South Korea’s exports
The explosive growth in exports is primarily linked to the global growth and expansion of the artificial intelligence sector, which has driven semiconductor demand. Semiconductor exports alone reached $6.7 billion, also marking a record high in the first ten days of the month. The figure represents a 137.6% increase from last year.
The share of semiconductor exports increased by 12.3 percentage points to 31.5%. The data also shows that exports of petroleum products and wireless communication devices rose 40.1% and 27.9% respectively. Passenger car and ship exports declined by 2.6% and 29% in the same period.
The country’s exports to all trading partners increased. Exports to the U.S. rose 38.5% while those to Malaysia rose by 136.1%. Exports to India and Japan also increased by 35.1% and 31.1%, respectively, while those to China and Vietnam rose by 54.1% and 38.1%, respectively.
As of Tuesday, the trade balance logged a surplus of $644 million, bringing the year’s cumulative surplus to over $9 billion.
Despite the positive start for February, the growth trend could be impacted by the Lunar New Year holidays, which have reduced the total number of working days in February to 19, which is 3 days fewer than the 22 days recorded in the same period last year.
South Korea hits a record high in chip exports for 10 consecutive months
South Korea’s exports also hit an all-time high in January, driven by strong chip demand. Cryptopolitan reported on February 1 that exports surged to a historic high in January, with shipments jumping more than 30% to reach $66 billion.
The report cited data from the Ministry of Trade, Industry, and Resources. This month, the daily average value of exports also hit a new all-time high of $2.8 billion, up 14% year on year.
The publication also credited the growth to rising semiconductor demand amid the AI boom. In January, outbound shipments of semiconductors hit $20.5 billion, more than double from a year earlier. The figures that month inched closer to $420.8 billion recorded back in December.
January’s exports to the U.S. increased 30% year over year to $12 billion. January’s exports added to Korea’s tally, bringing the month’s chip exports to a record high for the 10th consecutive month.
The Asian country has been active in the AI sector. On January 30, South Korea’s lawmakers enacted a new set of artificial intelligence legislation, dubbed the AI Basic Act. The legislation focuses on AI safety concerns, including those linked with generative AI and large language models.
The statute covers issues regarding Deepfakes and the dissemination of false information via AI systems. It also addresses mental health issues that could arise as AI continues to evolve.
In the U.S., only a few states have implemented regulations governing AI that address mental health advice. Many states are still considering similar legislation, while others have passed laws on child safety when using AI tools.