South Korea's Exports Hit Record High in March on AI-Driven Chip Demand

South Korea's exports surged to an all-time high in March, beating analyst forecasts and recording their fastest annual growth in nearly four decades. Driven by booming global demand for semiconductors tied to artificial intelligence investments, the country's outbound shipments reached $86.13 billion — a 48.3% jump from the same period last year. This outpaced the 44.9% median growth projected in a Reuters poll and marks the strongest yearly export growth since August 1988.

Semiconductor exports led the charge, skyrocketing 151.4% to a record $32.83 billion. Rising memory chip prices and expanding AI-related server infrastructure worldwide fueled this explosive performance. South Korea, widely considered a reliable indicator of global trade health, demonstrated just how central AI investment has become to international commerce.

Beyond chips, petroleum product exports climbed 54.9%, boosted by elevated oil prices following the U.S.-Israeli military campaign against Iran. Auto exports posted modest 2.2% growth despite supply chain disruptions stemming from the ongoing Middle East conflict. Shipments to China surged 64.2%, while exports to the United States and the European Union grew 47.1% and 19.3%, respectively. Notably, exports to the Middle East declined sharply by 49.1%, reflecting the direct impact of regional instability.

On the import side, South Korea brought in $60.40 billion worth of goods — a 13.2% year-on-year increase, though below the 18% economists had anticipated. Higher oil prices were a key driver, but import volumes remained constrained due to supply disruptions in the Strait of Hormuz.

The result was a record trade surplus of $25.74 billion, comfortably surpassing February's $15.38 billion and setting a new all-time high. The figures underscore South Korea's strengthening export momentum and its central role in the global AI supply chain.