South Korea’s Export Surge in February Surpasses Expectations with Semiconductor Boom

South Korea’s export growth in February outperformed predictions, marking a notable upturn for the fifth consecutive month, buoyed significantly by a robust demand for semiconductors. This surge offsets a dip in vehicle exports, underscoring the nation’s strong foothold in the global tech industry. According to data from the trade ministry, exports from Asia’s fourth-largest economy escalated by 4.8 percent year-over-year to $52.41 billion, surpassing the modest 1.9 percent increase anticipated by economists in a Reuters poll.

While the growth rate in February softened compared to the 18 percent year-on-year increase observed in January, the adjusted export growth rate for February, accounting for working-day differences, stood impressively at 12.5 percent. This adjustment reflects a significant acceleration from January’s 5.7 percent, factoring in the fewer working days in February due to the Lunar New Year holiday falling within the month, as opposed to January last year.

The stellar performance in semiconductor sales, which leaped by 66.7 percent, along with other high-value exports, reinforces optimism for a sustained recovery in South Korea’s overseas sales throughout the year. This is anticipated to bolster the overall economic growth, despite varied export performance across regions. Notably, exports to China dipped by 2.4 percent, whereas shipments to the United States experienced a 9 percent increase.

Conversely, imports into South Korea declined by 13.1 percent to $48.1 billion, a sharper fall than the 10.4 percent decrease projected by economists. This data highlights the dynamic shifts in global trade patterns and the pivotal role of the semiconductor industry in shaping South Korea’s export-driven economy.