Seoul (AFP) – South Korea recorded its highest ever semiconductor exports in September, official data showed Wednesday, despite growing pressure from US tariffs and other restrictions on the crucial sector. Seoul logged more than $16.6 billion in exports of semiconductors last month, up by more than a fifth from September 2024, according to data from the country’s industry ministry. The surge was driven by high demand for high-value memory such as HBM chips used in AI servers, the industry ministry said.
Cars, the country’s other key export, also performed strongly, with auto shipments climbing to $6.4 billion, the highest ever recorded for the month of September. Driven by these strong figures, overall exports reached $65.9 billion, the highest in more than 42 months. Exports rose to all major regions except the United States, which fell 1.4 percent from a year earlier to $10.27 billion, weighed down by tariffs on steel, automobiles, and machinery.
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. South Korea is one of Washington’s biggest trade partners, with automobiles leading the pack in exports. The country has yet to secure a deal, with auto tariffs reduced from 25 to 15 percent but not yet in effect, unlike in neighboring Japan. Tariffs of 50 percent also remain in place on some key exports such as steel and aluminum.
The new record is a “valuable achievement made by our companies, who swiftly diversified their export markets despite the unfavorable conditions of weakened exports to the US caused by tariff measures,” industry minister Kim Jung-kwan said in a statement. “Uncertainty surrounding our exports remains high due to ongoing US tariff negotiations, and we must remain vigilant and respond swiftly,” said Kim. He added that “the government will strengthen policy support to ensure that our companies can maintain export competitiveness.”
© 2024 AFP
