Seoul, Jan 1 (IANS) South Korea’s exports reached an all-time high of $709.7 billion in 2025, surpassing the landmark $700 billion mark for the first time, government data showed on Thursday.

Annual exports rose 3.8 percent from a year earlier, with semiconductor exports jumping 22.2 per cent on-year to a record high of $173.4 billion on the back of the growth of artificial intelligence (AI), according to the data compiled by the Ministry of Trade, Industry and Resources, reports Yonhap news agency.

Imports edged down 0.02 percent on-year to $631.7 billion in 2025, resulting in the largest trade surplus since 2017 of $78 billion.

The ministry attributed record-breaking exports last year to the robust performance of key export items, such as semiconductors, automobiles and ships, as well as the growth of smaller industries, including agro-fisheries and cosmetics.

Export destinations also diversified last year, with shipments to the United States and China down amid the rise of trade protectionism, but shipments to the Association of Southeast Asian Nations (ASEAN), Latin America and the Commonwealth of Independent States (CIS) went up, the ministry said.

By item, chip exports came to a record $173.4 billion as the average price of memory chips sharply increased amid sustained strong demand from AI data centers.

Car exports rose 1.7 percent on-year to $72 billion, also reaching an all-time high figure, despite U.S. tariff effects.

Shipments to the world’s largest economy declined due to tariffs, but shipments to the European Union (EU) and the CIS expanded, driven by demand for hybrid cars and used vehicles.

Biohealth exports climbed 7.9 percent to $16.3 billion, while exports of ships and computers advanced 24.9 percent and 4.5 percent to $32 billion and $13.8 billion, respectively.

Notably, shipments of agro-fisheries products went up 6 percent to $12.4 billion, and cosmetics exports jumped 11.8 percent to $11.4 billion, driven by the global popularity of Korean culture.

On the other hand, exports of petrochemical products and steel contracted 11.4 percent and 9 percent to $42.5 billion and $30.3 billion, respectively, amid global oversupply.

By destination, exports to the U.S. went down 3.8 percent on-year to $122.9 billion in 2025, as shipments of automobiles, auto parts, machinery and other products declined due to the Donald Trump administration’s sweeping tariff measures. Korea’s trade surplus with the U.S. dropped $6.1 billion from a year earlier to $49.5 billion last year.

Exports to China also slipped 1.7 percent to $130.8 billion with weaker demand for petrochemical products, wireless communications devices and machinery.

Shipments to ASEAN, on the other hand, gained 7.4 percent to $122.5 billion, led by semiconductor exports, and shipments to the EU added 3 percent to $70.1 billion on the back of strong demand for automobiles and ships.

Exports to the CIS escalated 18.6 percent to $13.7 billion, while exports to India rose 2.9 percent to a record high of $19.2 billion.

Exports to the Middle East went up 3.8 percent to $20.4 billion, up for the fifth consecutive year, and exports to Latin America increased 6.9 percent to $31 billion.

In December, outbound shipments expanded 13.4 percent from a year earlier to $69.6 billion, extending the winning streak to 11 consecutive months. Imports rose 4.6 percent to $57.4 billion, resulting in a trade surplus of $12.2 billion, according to the ministry.

—IANS

na/