Korean Media: South Korea Regains Top Import Supplier Status in China After Seven Years, Driven by Semiconductor Surge

On November 14, Korean media outlet Daily News reported that, fueled by a surge in semiconductor exports, South Korea has reclaimed its position as China’s largest source of imports for the first time in seven years. As South Korea continues to expand its market share in major economies including the United States, the country is on track to achieve its first-ever annual export volume exceeding $1 trillion.

According to statistics from the Korea International Trade Association, South Korea has maintained its top position in China’s import market for six consecutive months since April. From January to September this year, China’s total imports from South Korea reached $236.2 billion, marking a year-on-year increase of 75.1%.

During the same period, South Korea accounted for 9.8% of China’s total imports—a figure not seen since 2019—making it the largest single source of imports for China over the first nine months of the year.

The key driver behind this achievement lies in the semiconductor sector. From January to September, South Korea’s total semiconductor exports amounted to $340.3 billion, with exports to China reaching $105.4 billion—up 221.5% compared to the same period last year.

This upward trend continued last month. According to data from South Korea’s Ministry of Trade, Industry and Energy, semiconductor exports to China totaled $14.8 billion between October 1 and 25, representing a year-on-year surge of 331.0%, continuing a streak of nine consecutive months with triple-digit growth.

In addition to semiconductors, exports of computers (up 264%), general machinery (up 26%), agricultural and aquatic products (up 21%), and cosmetics (up 23%) also showed significant increases. As a result, total exports to China rose 133.6% last month to $26.98 billion.

In the U.S. market, export growth centered on semiconductors remained robust. From January to September, total imports from South Korea into the United States reached $129.2 billion, up 35.2% year-on-year. South Korea’s ranking in U.S. imports improved from ninth place last year to sixth place this year.

Notably, semiconductor exports to the United States have recorded double-digit monthly growth throughout the year. In the most recent month, exports reached $5.81 billion, surging 497.0% year-on-year. Total exports to the U.S. during the same period totaled $24.9 billion, reflecting a year-on-year increase of 185.8%.

The export boom has contributed to an improvement in trade balances. As of October, South Korea’s cumulative trade surplus stood at $294.9 billion, surpassing the previous annual record of $95.2 billion set in 2017. The trade deficit with China, which had persisted since 2023, turned into a surplus of $43.3 billion, while the surplus with the United States surpassed the $100 billion threshold for the first time, reaching $102.3 billion.

The target of achieving $1 trillion in annual exports appears increasingly attainable. As of October 10, South Korea’s cumulative exports totaled $963.7 billion, leaving a gap of $36.3 billion to reach the milestone. If the current daily average export value of $4.46 billion is sustained, the $1 trillion threshold is expected to be crossed around October 19 or 20.

Original article: toutiao.com/article/1881834188196871/

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