Home > Business > Economy

Yearly exports set to surpass $700B for first time on chips, ships

Published: 05 Dec. 2025, 17:04

Shipping containers are stacked at Busan Port on Dec. 1. [YONHAP]

Korea’s yearly exports are set to surpass $700 billion for the first time, buoyed by gains in chips and shipbuilding, trade data showed on Friday. Officials expect shipments to edge even higher in 2026 despite uneven sectoral trends.

Exports will likely reach $704 billion in 2025, up 3 percent from a year earlier, according to the Korea International Trade Association’s Institute for International Trade. Imports are projected to slip 0.3 percent to $630 billion, leaving a trade surplus of $74 billion.

Semiconductors and shipbuilding are driving the gains. Chip exports are expected to jump 19.8 percent to $170 billion this year, while shipbuilding exports will rise 22.4 percent.

But steel exports are set to fall 9.4 percent after the United States imposed a 50 percent tariff, and petroleum products will drop 11.7 percent as lower oil prices weigh on margins.

Next year’s outlook points to modest growth. The institute forecasts exports will rise 1 percent to $711 billion in 2026, with imports inching up 0.5 percent to $633 billion. The trade surplus will widen to $78 billion, though performance will vary sharply by industry.

Information technology goods are expected to lead the expansion, including semiconductors, which are projected to grow 5.9 percent, solid-state drives at 10.4 percent, wireless communication devices at 5.4 percent and displays at 2.9 percent. Autos are forecast to dip 1 percent due to tariff effects and greater local production in the United States. Petroleum products, petrochemicals and steel are also expected to remain weak.

“Korea’s tariff negotiations with the United States improved conditions for exports to the U.S. market, but global trade growth next year remains limited and uncertainty continues with the U.S. midterm elections and a possible revision of the United States–Mexico–Canada Agreement," said Chang Sang-sik, head of the institute.

“Korea should diversify export markets to the Middle East and Southeast Asia and broaden its export base with K-content and consumer goods," Jang added.

Exports accounted for 44.4 percent of Korea’s GDP in 2024, well above the Organisation for Economic Cooperation and Development average of 30 percent. Policymakers face pressure to ensure export-led gains flow into domestic demand.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM KI-HWAN [[email protected]]