South Korea expected to top $700 billion in exports for first time: KITA

무협 [사진=아주경제 DB]

SEOUL, December 05 (AJP) - South Korea’s exports are on track to surpass $700 billion for the first time this year, with momentum expected to continue into 2026, the Korea International Trade Association (KITA) said on Friday.

KITA forecasts exports will climb 3 percent from last year to $704 billion, while imports are projected to edge down 0.3 percent to $630 billion, producing a $74 billion trade surplus.

The report cites strong performances in semiconductors and shipbuilding as the main drivers of the record export tally. Demand for AI-related chips, including high-bandwidth memory, has surged amid tight production capacity, pushing up prices.

Ship exports are expected to jump more than 22 percent as deliveries accelerate for high-value vessels such as LNG carriers ordered in 2022 and 2023.

Automobile exports have been dented by higher U.S. tariffs, but diversification into other markets — including the European Union — has helped stabilize shipments.

Exports to the United States rebounded 13.7 percent in November following expectations of tariff easing in recent U.S.–Korea discussions. By contrast, steel and petroleum product exports continue to lag, weighed down by elevated tariffs and falling oil prices.

For 2026, KITA projects exports will rise a further 1 percent to $711 billion, with imports increasing 0.5 percent to $633 billion, maintaining a trade surplus of around $78 billion. Growth is expected to be led by IT products, notably semiconductors and solid-state drives (SSDs). Semiconductor exports are forecast to expand 5.9 percent, supported by AI-driven demand, while SSD shipments could grow 10.4 percent amid rising global storage needs.

“AI-related demand will remain a key engine for semiconductor and IT exports next year,” said Jang Sang-sik, head of KITA’s research institute. “But with global trade growth still limited and uncertainties such as the U.S. midterm elections ahead, Korea must diversify export markets to the Middle East and ASEAN and expand exports of K-content and consumer goods.”

* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
Jo Seong-jun 기자 critic@ajunews.com

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