South Korea's September Exports Hit Record on AI-Driven Chip Demand

South Korea's exports hit a record high in September, driven by strong global demand for semiconductors tied to artificial intelligence, customs data showed on Thursday.

Total outbound shipments rose 104.9% year-on-year on a working-day-adjusted basis and 83.5% unadjusted, reaching $120.9 billion. Semiconductors remained the core growth engine, with chip exports surging 263% to $60.3 billion. Computer product exports jumped 435%, while auto exports fell 5%. The country posted a trade surplus of nearly $50 billion for the month.

In the first nine months of 2026, total exports reached $814.5 billion, surpassing the $800 billion mark for the first time. By destination, shipments to China rose 123% year-on-year, to the U.S. 137%, to India 50%, and to the EU 21%.

Jiuk Choi, Asia-Pacific macro strategist at State Street, said the September data and trade balance far exceeded market expectations, though export growth is likely to moderate from the fourth quarter due to base effects. He added that continued global AI-related investment and higher prices for high-bandwidth memory chips would remain supportive.

Boosted by the global AI investment boom, the Bank of Korea raised its 2026 growth forecast from 2.6% to 3.3%. In August, it hiked its base rate by 25 basis points to 3%, the second consecutive increase. Strong semiconductor earnings are also expected to push annual tax revenue to a record 478.6 trillion won.