South Korea Posts Record Chip Exports in August

Seoul recorded more than $15 billion in exports last month of semiconductors, a new record and an increase by almost a third from August 2024.

The surge was driven by strong demand from China and the exemption of chips from tariffs, the industry ministry said Monday.

The country's other key exports, cars and shipbuilding, also performed strongly, with auto shipments climbing to $5.5 billion and ship exports to $3.14 billion, both marking their strongest August performance.

Driven by the strong figures, overall exports reached $58.4 billion, the highest ever recorded for the month of August.

Exports to the United States however, dropped 12 percent from a year earlier to $8.74 billion, as tariffs weighed on steel, auto and machinery shipments.

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.

But 50 percent duties remain in place on some key exports like steel and aluminium.

The strong export figures reflect "achievements born of the solid competitiveness of our companies and their determination to export, despite difficult external conditions such as US tariff policies," South Korea's Industry Minister Kim Jung-kwan said in a statement.

"To minimise the damage inflicted on small and medium-sized firms by U.S. tariff measures, the government will announce in early September a three-pronged support package," said Kim.