South Korea Exports Rise 8.3% in June on Semiconductor, Auto Demand

South Korea's exports showed mixed trends in 2025, with an overall decline of nearly 1 percent in the January-May period due to rising trade protectionism from major economies like the United States and geopolitical tensions in the Middle East. However, exports rebounded strongly in the first 20 days of June, rising 8.3 percent year-on-year to $38.67 billion driven by robust demand for semiconductors, which grew 21.8 percent, as well as increases in automotive and ship exports. Semiconductor exports hit a record high of $58.3 billion in the first five months, supported by demand for high-value products such as high bandwidth memory and DDR5. Imports also rose during June's early period, increasing 5.3 percent to $36.1 billion, resulting in a trade surplus of $2.6 billion. Despite the Trump administration's 25 percent tariffs on imported cars causing a 16.6 percent drop in shipments to the U.S. in the first five months, total shipments to the U.S. increased 4.3 percent in early June, though exports to China slightly declined. South Korean officials acknowledge serious challenges from global political and economic uncertainties but are committed to trade negotiations and policies aimed at industrial innovation.