South Korea’s Exports Extend Momentum as Chip Boom Persists

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessSouth Korea's Exports Extend Momentum as Chip Boom PersistsSouth Korea’s exports extended their strong growth in July, reinforcing signs that artificial intelligence-driven demand continues to underpin the economy and strengthen the case for further monetary tightening.Author of the article:Heesu Lee and Jaehyun Eom You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — South Korea’s exports extended their strong growth in July, reinforcing signs that artificial intelligence-driven demand continues to underpin the economy and strengthen the case for further monetary tightening.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountExports adjusted for working-day differences climbed 69.6% last month from a year earlier, the Ministry of Trade, Industry and Energy said Saturday. Imports increased 26.5%, resulting in a trade surplus of $30.3 billion. On an unadjusted basis, shipments rose 62.8%, compared with a revised 70.7% gain for the full month of June.Semiconductors again drove gains, supported by continued investment in AI and data centers. Chip exports surged 178.8% from a year earlier, while shipments of computer-related products gained 404%.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe data suggest external demand remains resilient even as higher energy prices and geopolitical tensions continue to weigh on other industries. That provides fresh support for the Bank of Korea’s view that economic momentum is strong enough to withstand increased borrowing costs. The figures also support the BOK’s decision last month to raise its benchmark interest rate by 25 basis points to 2.75%, its first increase since early 2023. A recent survey of economists showed they expect another move by October, with a minority predicting it could happen at the Aug. 27 board meeting.Governor Shin Hyun Song has since said policymakers still see a need for further rate increases, although the timing and pace will depend on inflation, economic growth and financial stability.Consumer inflation accelerated 3.2% last month from a year earlier, while core inflation held at 2.5%, suggesting underlying price pressures remain persistent. Meanwhile, the economy expanded 0.6% in the second quarter from the previous three months, beating economists’ expectations.The government expects the economy to expand 3% this year, outpacing forecasts by both the BOK and the International Monetary Fund as AI-related investments continue to boost exports and domestic demand.Shin said the bank’s May projection of 2.6% growth this year now appears too low and would be revised up “substantially” in August, citing stronger-than-expected exports, investment and consumption.Exports to China increased 96.2%, while shipments to the US rose 68.7%, and those to the European Union and the ASEAN region remained strong, reflecting sustained demand for semiconductors and other AI-related products.(Updates with new attribution in second paragraph, export details in third, destinations in 10th.)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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