South Korea's exports surged by 62.8% year-on-year in July 2026, reaching $98.89 billion, the second-highest monthly export value after June's record $102.2 billion [1, 2]. Semiconductor exports fueled the growth with a 179% increase compared to July 2025, while computer exports climbed more than 400%, driven by rising AI investments from major U.S. technology companies [1, 2].
Exports to China rose about 96%, and shipments to the United States increased roughly 69%, contributing to a trade surplus of $30.3 billion in July [1]. Imports also rose by 26.5% year-on-year to $68.56 billion over the month [1, 2]. Kim Jung-Kwan, South Korea's Minister of Trade, Industry and Energy, noted that "among Korea's 20 main export categories, 19 achieved growth supported by strong performance in the semiconductor industry, demonstrating effective export diversification" [2].
Samsung Electronics posted more than a 250-fold increase in semiconductor operating profits year-on-year in Q2 2026, with expectations that demand for AI chips will remain strong throughout the year [1, 3, 4]. Meanwhile, SK Hynix reported record quarterly profits but fell short of investor expectations, leading to a decline in its share price [1, 3, 4].
Economists pointed to factors slowing export growth in July compared to June, such as fewer working days and a moderation in chip shipment volume growth despite rising prices. Shinhan Securities economist Heo Geon-hyung said, "A large part of the export growth reflects sustained rises in semiconductor prices, though chip shipment volume growth was relatively moderate" [3]. iM Securities economist Park Sang-hyun added, "Based on continued strong semiconductor market development, the fundamental export momentum is unlikely to change significantly" [3].
Despite these gains, the South Korean Kospi stock index fell 22% in July, its largest monthly drop since 2008, amid investor concerns about AI-related market volatility [1]. South Korea's export growth in July represented the second strongest annual increase since the cycle starting in June 2025, with June itself marking the highest growth since 1978 [1, 3, 4].
