Stock Markets June 1, 2026 05:34 AM

South Korea Posts 53.2% Export Growth in May, Led by Semiconductors

Record trade surplus and a Bank of America upward revision to the current account forecast highlight the strength of tech-led shipments

By Ajmal Hussain EWY

South Korea's exports jumped 53.2% year-on-year in May, driven primarily by a surge in semiconductor shipments that accounted for 42% of export value. Imports rose 21.5%, expanding the trade surplus to $26.9 billion. Bank of America raised its projection for South Korea's 2026 current account surplus to $289 billion, or 15% of GDP.

South Korea Posts 53.2% Export Growth in May, Led by Semiconductors
EWY

Key Points

  • Semiconductors were the dominant force behind export growth, rising 169.4% year-over-year on a per-day basis and contributing 42% of total export value in May - impacting the technology and semiconductor sectors.
  • South Korea's trade surplus hit a record $26.9 billion in May as imports grew 21.5% and exports accelerated to 53.2% - relevant to macroeconomic balances and currency/financial markets.
  • Export gains were broad across Asia and the United States, with particularly large increases to China (80.9%), ASEAN ex-Vietnam (58.4%), and Vietnam (61.4%), while European exports slowed to 2.4% - affecting regional trade flows.

South Korea's external trade showed a marked acceleration in May, with exports climbing 53.2% year-over-year on a per-day basis, up from 48.0% in April, according to Bank of America. Imports also expanded, rising 21.5% year-over-year, while the trade surplus widened to $26.9 billion from $23.8 billion in April - a new high.

Technology goods, and semiconductors in particular, were the main driver of export strength. Semiconductor shipments increased 169.4% year-over-year on a per-day basis in May, a slight moderation from the 173.5% gain recorded previously. The chip sector accounted for 42% of total export value for the month.

Other technology categories showed mixed outcomes. Computer exports, dominated by hard disk products, surged 291%, while mobile device exports rose 12.7%.

Outside the tech sphere, some goods supported export growth while others retreated. Vessel exports rose 16.8%, and petroleum exports climbed 47.5%, up from 39.9% in April. By contrast, automotive and auto parts shipments declined 5.9% and 3.0%, respectively. Among intermediate and industrial goods, general machinery exports fell 6.0%, steel products contracted 20.3%, and petrochemical exports increased 11.1%.

Manufacturing activity also reflected strength, with the manufacturing PMI edging up to 54.8 in May from 53.6 in April.

Geographically, export growth accelerated across much of Asia and the United States. Shipments to China rose 80.9% year-on-year, exports to ASEAN countries excluding Vietnam increased 58.4%, and exports to Vietnam grew 61.4%. Exports to the United States accelerated to 59.1% from 54.0. By contrast, export growth to Europe slowed to 2.4%. The decline in exports to the Middle East eased, narrowing to 7.4% from a 24.9% contraction.

Reflecting the stronger external performance, Bank of America revised its forecast for South Korea's current account surplus for 2026, raising the estimate to $289 billion, or 15% of GDP, up from a prior projection of 10.1% of GDP.


Note: All figures cited are year-over-year changes and per-day comparisons where specified, and are presented as reported.

Risks

  • Concentration risk from the semiconductor sector: with chips accounting for 42% of export value in May, a downturn in semiconductor demand could materially reduce export strength - this primarily impacts the technology and semiconductor industries.
  • Weakness in specific manufacturing subcategories: declines in steel products (down 20.3%), general machinery (down 6.0%), and automotive and auto parts (down 5.9% and 3.0%) may weigh on manufacturing exports and related supply chains.
  • Regional demand variability: the slowdown in European exports to 2.4% and the ongoing contraction in Middle East shipments, albeit narrowed to 7.4%, introduce uncertainty for exporters dependent on those markets.

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