South Korea's Exports Surge to Record High Despite US Tariffs
South Korea has secured a reduced tariff rate of 15% on automobiles from the United States. However, this deal is not yet in effect. Despite ongoing US tariffs, South Korea's exports have reached an impressive $65.9 billion, the highest in over 3.5 years.
The surge in exports can be attributed to high demand for high-value memory chips, such as HBM, which drove the semiconductor sector's growth. In September alone, semiconductor exports increased by over a fifth compared to the same period last year, reaching a record high of over $16.6 billion. Auto exports also performed exceptionally well, reaching a record high of $6.4 billion in September.
However, the impact of US tariffs is still evident. Exports to the United States fell by 1.4% due to tariffs on steel, automobiles, and machinery. Tariffs of 50% remain in place on some key South Korean exports, such as steel and aluminum. The minister expressed caution due to ongoing US tariff negotiations and committed to supporting export competitiveness.
Despite the challenges posed by US tariffs, South Korea's exports have reached unprecedented heights, driven by strong demand for semiconductors and autos. The industry minister praised companies for diversifying export markets and committed to supporting their competitiveness. While a reduced tariff rate on automobiles has been secured, it is not yet in effect, and negotiations continue.
