South Korean exports nearly doubled in October, marking the sharpest jump in more than 50 years, as continued demand for AI products propelled shipments of the country's chips, government data showed on Sunday.
Exports from Asia's fourth-largest economy, a bellwether for global trade, rose 93.7% from the same month last year to $115.28 billion, slightly higher than a median 93.2% rise forecast in a Reuters poll of economists.
The surge, boosted by having more working days than a year earlier due to the timing difference in the Chuseok holidays, exceeded September's 83.7% gain and was the strongest since January 1974.
Riding the global boom in AI investment, South Korea's economy grew faster than expected in the third quarter on strong semiconductor exports and investments, with chipmakers Samsung Electronics and SK Hynix posting surging profits.
"With exports continuing solid growth of more than $110 billion in October, it is becoming certain that annual exports of $1 trillion will be reached within November," said Kim Jung-kwan, the minister of trade, industry and resources.
South Korea's exports for the January-October period totaled $930 billion. Annual exports of more than $1 trillion will make South Korea the fourth country in the world to reach the milestone, after the U.S., China and Germany.
Overseas sales of semiconductors jumped 259.4% in October to $56.44 billion, as prices and volume remained high on continued facility investment by global big tech firms in the competition for AI industry leadership, the trade ministry said.
Computer sales spiked 496.6% on increasing server demand for AI services.
Shipments to China rose 133.6%, while those to the U.S. grew by 185.8%, to Europe by 56.4% and to Southeast Asia by 128.0%.
South Korea's imports rose 36.0% to $72.78 billion, after rising 26.0% in September, to post the biggest annual increase since January 2022 on higher crude oil prices, as well as demand for semiconductor manufacturing equipment and automobiles.
The nation posted a monthly trade surplus of $42.50 billion, narrower than a record $49.97 billion surplus in the previous month.