South Korea's Export Surge Driven by AI Chip Demand

South Korean exports are expected to continue strong growth in July, buoyed by robust AI chip demand. Despite a slight decrease from June's record surge, exports are projected to rise by 59% year-on-year. This trend is bolstered by major chipmakers amidst global semiconductor market dynamics.

South Korean exports are set to maintain a robust growth trajectory in July, despite a slight slowdown from a historic high, fueled by soaring demand for AI chips, a Reuters poll indicated on Thursday.

Analysts expect a 59% year-on-year increase in the export value for July, making it the second-largest annual growth in the ongoing streak since June 2025. Although slower than June's 70.7% rise, this growth is largely credited to Samsung Electronics and SK Hynix benefiting from a global AI investment surge, says economists.

With semiconductor shipments climbing 180.6% in early July, experts highlight the sustained strength in exports despite market volatility affecting South Korean equities. The KOSPI index has fallen over 30%, driven by concerns of a tech sector downturn. South Korea's trade figures for July will be officially released on Saturday.