Korea’s 2024 exports hit all-time high, driven by chips, shipments to China

South Korea’s exports, the country’s main growth driver, reached an all-time high in 2024, buoyed by strong semiconductor exports and a rebound in shipments to China.

Korea’s outbound shipments rose 8.2% from a year earlier to a record $683.8 billion in 2024, data from the Ministry of Trade, Industry and Energy showed on Wednesday.

Despite the strong performance, the figures fell short of the government export target of $700 billion. Asia’s fourth-largest economy, Korea also failed to overtake its closest neighbor, Japan, which also struggled amid global economic turbulence.

Korea’s imports fell 1.6% on-year to $632 billion, resulting in a trade surplus of $51.8 billion, the highest surplus since $69.7 billion in 2018.

Of 15 major export items, eight types of goods posted year-on-year growth, the ministry said.

CHIPS LEAD OVERALL GROWTH

Korean exports of semiconductors, the country’s top export item, increased 43.9% on-year to reach a record $141.9 billion, leading the country’s overall export growth.

Korea is home to the world’s two largest memory chipmakers, Samsung Electronics Co. and SK Hynix Inc.

Strong overseas chip sales were led by demand for premium products, including high-bandwidth memory (HBM) chips amid an overall decline in global semiconductor prices.

SK Hynix is the world’s top HBM supplier to major chip designers, including Nvidia Corp.

Outbound shipments of other tech products also increased throughout 2024, with those of mobile devices and computers rising 11% and 77% on-year, respectively.

Exports of ships jumped 18% to $25.6 billion, buoyed by demand for large container and liquefied natural gas carriers.

DECENT GROWTH IN CHINA, US

By destination, exports to China, Korea’s top trading partner, rose 6.6% on-year to $133 billion.

Shipments to the US gained 10.5% on-year to $127.8 billion in 2024, reaching a new annual high for the seventh consecutive year.

For December, exports grew 6.6% from a year earlier to $61.4 billion, posting an on-year increase for the 15th consecutive month.

Imports rose 3.3% to $54.8 billion in December, resulting in a monthly trade surplus of $6.5 billion – a trade surplus for 19 straight months.

December chip exports jumped 31.5% to $14.5 billion, setting a new monthly high on strong shipments of HBM chips and DDR5 products.

HEADWINDS

Analysts said the country’s export outlook for 2025 is grim as it faces looming political, trade and social headwinds, including global economic sluggishness and the second Donald Trump administration. 

Economists expect Korea’s exports to increase by about 2% this year.

“We will minimize the negative impacts stemming from the launch of the new US administration. Also, we will actively support our businesses in their efforts to make the most of emerging opportunities,” said Trade Minister Ahn Deok-geun.

Last week, Korea’s new Acting President Choi Sang-mok said he is confident that the country’s economy is resilient and its national security is tight despite growing concerns about political wrangling between rival parties over President Yoon Suk Yeol’s short-lived martial law declaration and his impeachment in early December.

Write to Yeong-Hyo Jeong at hugh@hankyung.com

In-Soo Nam edited this article.