Sawt Falasteen - AI, chips boom sent South Korea exports soaring in 2025

Total exports last year were valued at over $700 billion, according to data from Seoul's industry ministry, up 3.8 percent from the previous year.

The worldwide surge in interest in artificial intelligence saw semiconductor industry exports reach $173.4 billion in 2025 -- a record high and an increase of more than 20 percent from the previous year, the ministry said.

High-priced memory chips used in AI data centres were in strong demand, they added.

Semiconductor exports in December alone rose more than 40 percent year-on-year, posting gains for a tenth consecutive month and marking the highest monthly figure on record.

South Korean tech juggernaut Samsung Electronics is one of the world's top memory-chip makers, providing crucial components for the AI industry and the infrastructure it relies on.

The country is also home to SK hynix, another key player in the global semiconductor market.

And South Korean President Lee Jae Myung has vowed to triple spending on AI this year -- a move aimed at propelling the country into the ranks of the world's top three AI powers behind the United States and China.

Cars, South Korea's other key export, also performed strongly, with auto shipments rising to $72 billion, the highest on record despite US tariff pressures.

Other sectors like agriculture and cosmetics also recorded their highest-ever figures, buoyed by strong global interest in the country's pop culture powerhouse, its food and beauty products.

- 'Challenging conditions' -

Exports rose everywhere except to the United States and China, 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.

The new record was "achieved amid challenging domestic and external conditions", industry minister Kim Jung-kwan said in a statement.

It also "serves as an indicator of the South Korean economy's solid resilience and growth potential," he said.

But, he warned, "export conditions this year are expected to remain difficult, as uncertainties persist in the trade environment, including the sustainability of semiconductor demand".

Z.AlNajjar--SF-PST