South Korean exports soar in July 2025, driven by semiconductors, automotive, ships, and cosmetics

Containers are stacked at a port in Busan, Thursday (Image: Yonhap)

Dubai, UAE: South Korean exports demonstrated spectacular growth in July 2025 at a rate of nearly six per cent compared to 2024. This upward performance marks the second consecutive month of export expansion, even in periods of volatility in international trade.

The growth was led primarily by products like semiconductors, vehicles, high-valued ships, and a booming cosmetics industry. Yonhap reported.

Record-Breaking Overall Performance

Total outbound shipments reached $60.8 billion (AED 223.47 billion) last month, setting a new record for any July. Imports also saw a modest increase of 0.7 per cent year-on-year, totalling $54.2 billion (AED 199.05 billion).

This resulted in a robust trade surplus of $6.61 billion (AED 24.27 billion) for the month, extending South Korea’s run of monthly trade surpluses since June 2023.

Key Growth Drivers: Semiconductors, Automotive, Shipbuilding, and Cosmetics

Leading the charge was the semiconductor sector, with exports rocketing by an impressive 31.6 per cent year-on-year to $14.71 billion (AED 54.00 billion).

This figure marks an all-time high for any July, fuelled by rising memory chip prices and strong global demand for high-value products like high bandwidth memory (HBM) chips and DDR5.

A Ministry of Trade, Industry and Energy official noted that while some of this increase was due to firms securing inventory before potential US tariffs, the sector’s strong performance is expected to continue throughout the year, driven by the expansion of the artificial intelligence market.

Automobile exports also saw significant growth, rising 8.8 per cent to $5.83 billion (AED 21.41 billion). Strong demand from the European Union, Latin America, and the Commonwealth of Independent States (including Russia) largely contributed to this upward trend. Despite a slight decrease in auto exports to the United States and a sharp drop in electric vehicle shipments there due to existing tariffs, the overall sector maintained its resilience, particularly following a recent trade deal with Washington that reduced US tariffs on Korean cars.

The shipbuilding industry experienced an extraordinary surge, with exports spiking by 107.6 per cent year-on-year to $2.24 billion (AED 8.23 billion). This marks the fifth consecutive month of growth for the sector, driven by robust demand for high-value vessels, notably liquefied natural gas (LNG) tankers.

Furthermore, cosmetics exports shone brightly, increasing by 18.1 per cent to $980 million (AED 3.60 billion). This achieved a record high for any July, propelled by the soaring global popularity of Korean food and culture, alongside South Korea’s concerted efforts to diversify its export markets. This continued success underscores the global reach of the "K-beauty" phenomenon.

Varied performance across other sectors

While, geographically, exports to the United States rose by 1.4 per cent to $10.33 billion (AED 37.96 billion), for the first time since early last year, the US was surpassed by China and the Association of Southeast Asian Nations (ASEAN) as a top importer of Korean goods. Shipments to ASEAN soared 10.1 per cent to $10.91 billion (AED 40.08 billion), driven by strong chip demand. Exports to EU countries expanded 8.7 per cent to $6.03 billion (AED 22.14 billion), while those to CIS nations spiked 21.5 per cent to $1.22 billion (AED 4.48 billion). Conversely, exports to China decreased by 3 per cent to $11.05 billion (AED 40.62 billion), influenced by weaker demand for petrochemical products and wireless communications equipment.

Exports of petroleum and petrochemical products saw declines of 6.3 per cent and 10.1 per cent respectively, totalling $4.21 billion (AED 15.46 billion) and $3.75 billion (AED 13.77 billion). Biohealth products dropped by 4.9 per cent to $1.18 billion (AED 4.33 billion), computers tumbled 18.5 per cent to $950 million (AED 3.49 billion), and displays fell 9 per cent to $1.57 billion (AED 5.77 billion). Machinery exports dropped 17.2 per cent to $4.28 billion (AED 15.73 billion), affected by US tariffs, and steel exports contracted 2.9 per cent to $2.72 billion (AED 9.99 billion) due to sluggish demand and tariffs.

Competitive edge in a changing landscape

Industry Minister Kim Jung-kwan highlighted the positive impact of the recent trade agreement with the United States. He stated that "Korea now faces tariff rates equal to or lower than those of our rival countries," positioning Korean companies to compete on "equal or even more favourable terms" in the US market.

The government has pledged active support to help businesses enhance competitiveness and diversify export destinations in this evolving global trade environment.