South Korea achieved a historic economic milestone in 2025, with total annual exports reaching a record high of 709.7 billion U.S. dollars. The primary engine driving this unprecedented growth was the semiconductor sector, which solidified its position as the nation's key industry. Semiconductor exports soared to 173.4 billion dollars, accounting for approximately 24 percent of Korea's total outbound shipments. This marks a substantial 22 percent increase compared to the previous year and secures a record high for the second consecutive year.
The surge in semiconductor performance is directly linked to the explosive global expansion of investment in Artificial Intelligence data centers. This AI boom has triggered critical demand for high-performance memory solutions, specifically High Bandwidth Memory, or HBM. The resulting supply constraints and subsequent rise in overall memory chip prices significantly boosted export values for major Korean players like Samsung Electronics and SK Hynix.
Beyond semiconductors, the automotive sector also recorded its highest-ever export performance at 72 billion dollars, a 2 percent increase year-over-year. While automotive shipments to the United States saw a decline, strong sales of eco-friendly vehicles and used cars in non-U.S. markets compensated for the shortfall. Conversely, traditional industrial sectors, including petroleum products, petrochemicals, and steel, experienced a decrease in exports.
Regionally, the landscape of Korea's trade partners is shifting. While exports to major markets like China and the United States decreased, shipments to the Association of Southeast Asian Nations, or ASEAN, grew by 7 percent to reach 122.5 billion dollars, rapidly approaching the scale of exports to the U.S. Exports to the European Union also saw a positive growth of 3 percent.
