South Korea’s exports extended their growth streak in January, supported by strong semiconductor demand and a higher number of working days compared to the previous year due to a favourable calendar. Unadjusted shipments rose 33.9% year-on-year, according to data released by the Trade Ministry, following a 13% increase in December. Imports grew 11.7%, resulting in a trade surplus of $8.74 billion.

However, economists noted that the headline figure was likely distorted by the timing of the Lunar New Year holidays. On a working-day adjusted basis, exports increased by a more moderate 14%, offering a clearer picture of underlying momentum. Semiconductor exports remained the key growth driver, surging 103%, reflecting continued investment linked to artificial intelligence and data-centre expansion.

Auto exports rose 22%, while wireless communication products posted a strong 67% increase. These gains helped offset weakness in steel exports, which edged up just 0.3% amid US tariffs and overseas production pressures.

By destination, exports to China climbed 47%, shipments to the United States rose 30%, and exports to the European Union increased 7%. Despite ongoing trade uncertainties and tariff risks from the US, the data suggest that South Korea’s export sector remains resilient. At the same time, policymakers continue to monitor inflation, currency volatility, and household debt, which remain key challenges for the economy.