Defying a turbulent year of global trade tensions, South Korea's exports climbed to an unprecedented peak in 2025, official data revealed on Thursday. The remarkable performance was fuelled by insatiable worldwide demand for semiconductors, particularly those powering the artificial intelligence revolution.
Record-Breaking Export Figures Amid Tariff Turmoil
According to data released by Seoul's Ministry of Trade, Industry and Energy, the total value of exports for the year 2025 crossed the monumental threshold of $700 billion. This marked a significant increase of 3.8 percent compared to the previous year's figures. This achievement is especially notable given the challenging backdrop of trade disputes initiated by former US President Donald Trump's aggressive tariff policies.
The Semiconductor Surge: AI Fuels a $173.4 Billion Boom
The standout driver of this export triumph was the semiconductor sector. The ministry reported that chip exports alone reached a staggering $173.4 billion in 2025. This represents a record high for the industry and a year-on-year growth of more than 20 percent.
The explosion of interest and investment in artificial intelligence technology created a massive need for high-performance memory chips. These components are essential for the data centres that train and run complex AI models. South Korea, a global powerhouse in chip manufacturing, was perfectly positioned to meet this demand.
The nation is home to two of the world's leading memory-chip producers: Samsung Electronics and SK hynix. These tech juggernauts supply critical hardware that forms the backbone of the global AI infrastructure, from servers to consumer devices.
Automobile Exports Accelerate Despite US Pressure
Beyond semiconductors, South Korea's other major export pillar—the automobile industry—also demonstrated impressive resilience. Shipments of cars rose to $72 billion, setting a new record for the sector.
This strong performance occurred even under the shadow of US tariff pressures. Initially facing a steep 25 percent across-the-board tariff from the United States, one of its largest trade partners, South Korean negotiators managed to secure a last-minute agreement. This deal reduced the tariff rate to 15 percent, providing crucial relief for the auto industry and helping to maintain its competitive edge in a key market.
The 2025 trade data underscores South Korea's vital role in the high-tech global supply chain. As the world's fourth-largest economy in Asia, its ability to navigate trade headwinds while capitalising on technological trends like AI has proven to be a formidable economic strategy. The record exports highlight the country's enduring strength as a manufacturing and innovation hub, even in a complex international trade environment.
