South Korea Exports Surge in January on AI Chip Demand, Marking Fastest Growth in 4.5 Years

South Korea’s exports recorded a strong start to the year, rising for an eighth consecutive month in January and posting their fastest growth in four and a half years, driven largely by booming global demand for AI servers and semiconductors. According to government trade data released Sunday, exports from Asia’s fourth-largest economy jumped 33.9% year-on-year to $65.85 billion, significantly outperforming the 29.9% increase forecast in a Reuters poll of economists.

Imports also rose, though at a more moderate pace. January imports increased 11.7% from a year earlier to $57.11 billion, reflecting steady domestic demand alongside improving trade conditions. The sharp rise in exports reinforces South Korea’s role as a key barometer for global trade trends, particularly in the technology and manufacturing sectors.

Semiconductor exports were the standout performer, more than doubling with a 102.7% annual increase. The Ministry of Trade attributed the surge to rising memory chip prices and sustained demand from data centers and AI server manufacturers. Analysts noted that the ongoing semiconductor rally has been supported by supply constraints and strong global investment in artificial intelligence infrastructure. Park Sang-hyun of iM Securities added that a higher number of working days compared with January last year also helped lift export figures.

Out of South Korea’s 15 major export categories, 13 posted growth, including automobiles, petrochemical products, steel, and computers. This broad-based improvement highlights a recovery across both traditional manufacturing and high-tech industries.

By destination, exports to China saw the sharpest increase, soaring 46.7% year-on-year, while shipments to the United States climbed 29.5% and exports to the European Union rose 6.9%. Industry Minister Kim Jung-kwan welcomed the balanced growth but cautioned that global trade uncertainty is increasing due to U.S. tariff policies and rising protectionism. He also noted that further discussions with the United States may be needed following recent trade talks, as tariff risks could weigh on future export momentum.