Seoul (AFP) – South Korea’s exports surged to their highest level ever for a July, fuelled by strong overseas demand for semiconductors and automobiles, despite US tariffs weighing on trade, government data showed Friday. The country’s exports exceeded $60 billion in July, up nearly six percent from the same period last year, according to the ministry of industry and trade.
Semiconductors, South Korea’s main export, recorded more than $14 billion — the highest-ever for July, increasing by almost a third from the previous year. The strong showing was led by robust demand for products used in artificial intelligence, such as high-bandwidth memory (HBM) chips, the ministry said.
Asia’s fourth-largest economy was initially hit with a 25 percent across-the-board tariff by the United States but managed to secure a last-minute agreement for a reduced 15 percent rate. However, 50 percent duties remain in place on exports like steel and aluminium. Despite declines in steel and auto parts exports due to tariffs, shipments to the United States rose over the past year, driven by increased exports of semiconductors and wireless communication devices.
“The trade and export environment surrounding South Korea was marked by extreme uncertainty in July, as the US prepared to impose new tariffs starting August 1,” Industry and Trade Minister Kim Jung-kwan said in a statement. “Despite these difficult conditions, South Korean companies made an all-out effort to maintain export momentum, achieving a record-high performance for the month,” Kim added.
Kim said trade negotiations with the United States had “removed much of the uncertainty surrounding our export environment and ensures that Korean exporters can now compete in the US market on equal or more favourable terms.” US President Donald Trump on Wednesday said his South Korean counterpart Lee Jae-myung will visit the White House for bilateral talks “within the next two weeks.” Experts expect more details of the trade agreement to be announced at that time.
© 2024 AFP
