SEOUL, Dec 1 (Reuters) – South Korea’s exports continue to show strength, with November marking the sixth consecutive month of growth. The latest data surpassed market expectations, driven by a surge in chip sales and a boost in auto exports following a U.S. trade agreement.
According to trade data released on Monday, South Korea’s exports rose by 8.4% year-on-year to $61.04 billion. This growth outpaced the 5.7% increase forecasted in a Reuters poll, as well as the 3.5% rise seen in October.
Semiconductor exports were a standout performer, climbing by 38.5% to reach a record monthly high of $17.26 billion. The demand for advanced chips used in data centers drove up memory chip prices, contributing to this impressive growth.
Auto exports also saw a significant increase of 13.7%, following the resolution of uncertainties surrounding U.S. tariffs. South Korea’s trade deal with the U.S., finalized in November after months of negotiations, provided a much-needed boost to this sector.
However, shipments to the U.S. experienced a slight decline of 0.2%, attributed to lower exports of steel products, machinery, and auto parts impacted by tariffs. On the other hand, exports to China rose by 6.9% and to Southeast Asian countries by 6.3%, while shipments to the European Union fell by 1.9%.
The Bank of Korea recently signaled a potential end to its monetary easing cycle, citing the strong performance of semiconductor exports. The economy grew at its strongest pace in a year and a half in the third quarter, supported by robust exports in the face of U.S. trade tensions.
Imports also saw a modest increase of 1.2% in November, reaching $51.30 billion. While this growth was below economists’ expectations of 3.4%, it marked a reversal from the 1.5% decline seen in October.
The trade balance for November stood at a surplus of $9.7 billion, the largest since September 2017 and an improvement from the previous month’s $6.0 billion surplus.
In conclusion, South Korea’s export performance continues to be a key driver of economic growth, with semiconductor sales and auto exports leading the way. The country’s trade dynamics with the U.S., China, and other key markets will remain crucial in shaping its economic outlook in the months ahead.
(Reporting by Jihoon Lee; Editing by Tom Hogue and Christopher Cushing)
