South Korea exports surge 33.9% in January as AI chips fuel record growth amid tariff tensions

South Korea Jan exports beat forecasts, logs sharpest rise since 2021

SEOUL, Feb 1 (Reuters) - South Korea's exports rose in January for an eighth consecutive month and at the fastest pace in four and a half years, as demand for AI-servers continues to power the country's chip sales, government data showed on Sunday. Exports from Asia's fourth-largest economy, a bellwether for global trade, rose 33.9% in January to $65.85 billion, trade data showed, beating a median 29.9% increase tipped in a Reuters poll of economists. Imports also gained 11.7% in January from a year earlier to $57.11 billion. Exports of semiconductors more than doubled, jumping 102.7% from a year earlier, extending the chip rally thanks to "the rise in memory prices since last year continued in January due to high demand for AI servers," according to the trade ministry. "The surge in chip sales is expected to continue for the time being due to factors such as soaring semiconductor prices and supply shortages," said Park Sang-hyun, an analyst at iM Securities, who said the larger number of working days in January this year also helped trade performance as January last year had fewer working days. Of the country's 15 major export items, sales for 13 of them including chips, cars, petrochemical products, steel and computers increased. Destination-wise, exports to China logged the sharpest exports increase, jumping by 46.7% on-year in January. Exports to the U.S. increased 29.5% and to EU 6.9%. "It is positive that major items such as semiconductors and automobiles as well as promising items such as consumer goods showed even growth," industry minister Kim Jung-kwan said through the press statement. "Having said that, uncertainty in the trade environment has increased due to the U.S. tariff policy and the spread of protectionism." Kim on Saturday said South Korea needs more discussion with the U.S. on a trade deal they reached last year after two days of talks through Friday with his counterpart, following U.S. President Donald Trump's announcement to raise tariffs. Reporting by Cynthia Kim; Editing by Diane Craft Our Standards: The Thomson Reuters Trust Principles., opens new tab

South Korea posts record January exports on AI chip boom

South Korea posted its highest-ever exports for the month of January, official data showed on Sunday, fuelled by a global AI boom heavily reliant on chips made in the country. The record was set a month earlier, when the country exported chips worth $20.8 billion. South Korea posted its highest-ever exports for the month of January, official data showed on Sunday, fuelled by a global AI boom heavily reliant on chips made in the country. Budget 2026 Live Budget 2026 Live UpdatesIncome Tax Slabs Live UpdatesStock Market Live Updates The total value of January's exports was $65.8 billion, a 33.9 percent rise on-year, according to a trade ministry statement, marking the first time they surpassed a $60 billion threshold for the month. Home to the world's leading memory chip makers, South Korean products have become crucial to AI infrastructure. Technology giants Samsung and SK both posted record quarterly operating profits in the October-December period. "Semiconductor exports came in at $20.5 billion, a 102.7 percent increase," the ministry said, the second-highest monthly chips exports. The record was set a month earlier, when the country exported chips worth $20.8 billion. Automobile exports increased 21.7 percent on-year to $6 billon thanks to the strong performance of hybrid and electric cars, it said. It comes as Seoul is scrambling to respond to US President Donald Trump's announcement earlier this week that he was raising tariffs on South Korean goods to 25 percent from 15 percent, accusing the South Korean legislature of not having ratified their trade deal. Seoul and Washington struck a deal in October with Seoul pledging investment in the United States in exchange for slicing tariffs from 25 to 15 percent. Seoul's presidential office insisted in November that the deal does not require parliamentary approval, arguing it represents a memorandum of understanding rather than a binding legal document. South Korean Trade and Industry Minister Kim Jung-kwan met his US counterpart Howard Lutnick in Washington following the hike announcement and returned to Seoul on Saturday. "There was considerable disappointment (from the US) over the fact that the special bill remains pending in the National Assembly," Kim told reporters at the airport, adding that talks would continue.