By Kwanwoo Jun
South Korea's exports surged again in April, driven by semiconductor shipments, signaling resilience in the trade-dependent economy despite geopolitical risks stemming from the Middle East conflict.
Semiconductor shipments, which account for about a quarter of the country's total exports, nearly tripled from a year earlier on strong demand from global technology companies building artificial-intelligence infrastructure.
The result highlights how AI-related demand is helping high-tech economies withstand volatility and uncertainty linked to the conflict in the Middle East.
Earnings at major memory-chip makers such as Samsung Electronics and SK Hynix hit record highs in the first quarter and are forecast to continue reaching new highs this year, even as the Iran conflict increases input costs.
The Ministry of Trade, Industry and Energy on Friday said exports rose 48.0% year-over-year to $85.89 billion in April, following a revised 49.2% increase in March. The figure exactly matched the median forecast from a Wall Street Journal survey of economists.
Preliminary data from the ministry showed imports increased 16.7% from a year earlier to $62.11 billion, resulting in a trade surplus of $23.77 billion in April.
Strong memory-chip shipments continued to drive export growth, offsetting weakness in other categories, such as auto and steel.
Monthly memory-chip exports reached $31.90 billion in April, up 174% from a year earlier, after topping $30 billion for the first time in March. This momentum is expected to continue through the year, providing a buffer for the economy against geopolitical headwinds.
Still, with growth heavily reliant on exports--particularly electronics and AI-related products--analysts warn of an uneven "K-shaped" economy, where the tech sector outperforms while other industries stagnate and consumers face rising costs.
In March, South Korea imposed temporary export curbs on naphtha, a key petrochemical feedstock, amid supply constraints after shipments through the Strait of Hormuz stalled following the start of the conflict in late February.
April data showed that logistics disruptions and higher raw-material costs weighed on exports of autos. Car exports fell 5.5% year-over-year for the month.
Shipments to the Middle East plunged 25% from a year earlier in April, while exports to the U.S. and China rose 54% and 63%, respectively.
Even the chip sector may not be immune. If the conflict drags on and depletes critical materials stockpiles, the industry could face significant cost pressures.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
April 30, 2026 21:06 ET (01:06 GMT)
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