South Korea’s export sector showed continued resilience in November, supported by strong global demand for semiconductors and automobiles, according to customs data released Monday.
Export shipments, adjusted for working-day differences, advanced 13.3% year-on-year, following a 14% gain in October. Headline exports rose 8.4% after a revised 3.5% uptick in the previous month, while imports increased by 1.2%, resulting in a trade surplus of $9.7 billion.
Semiconductor shipments remained the primary driver, surging nearly 39% amid persistent demand in artificial intelligence and data center markets. Automobile exports also rebounded, advancing almost 14% and offsetting weakness in sectors such as petrochemicals.
This robust performance arrived after the Bank of Korea (BOK) kept its benchmark policy rate at 2.5% and signaled a more balanced outlook on further easing. Bank of Korea Governor Rhee Chang Yong noted a divided Board, with a split between those in favor of further rate cuts and those preferring to hold steady in the near term.
Meanwhile, the central bank also upgraded its economic outlook, raising the 2026 growth forecast to 1.8% and increasing its projection for 2025 to 1%, citing resilient private consumption and strength in chip exports.
Last month, South Korea and the United States finalized a major agreement to cap U.S. tariffs on South Korean goods at 15%, a move informed by a special bill presented by the ruling party to implement South Korea’s $350 billion investment commitments. As a result, automobiles—previously subject to a 25% levy—are expected to benefit from reduced rates starting November 1.
Governor Rhee expressed optimism that both outbound shipments and corporate equipment investment would surpass expectations, bolstered by the ongoing semiconductor upcycle and recent trade developments with Washington.
Exports to the United States edged down 0.2% as sectors like steel and auto parts faced pressure from U.S. tariffs. In contrast, exports to China climbed 6.9%, while shipments to the Middle East surged around 33% and those to Southeast Asia rose by 6.3%.
Sustained trade strength may allow the BOK to exercise caution on monetary policy amid policymakers’ evaluation of domestic risks, including mounting household debt and elevated property prices. Notably, exports contribute to more than 40% of South Korea’s GDP.
