Semiconductors have become the undisputed heavyweight of South Korea’s export economy. As the nation eyes a record-breaking $700 billion in total exports by the end of 2025, one sector is carrying much of the weight semiconductors.
Semiconductors now power nearly a third of South Korea’s exports
As of now, exports have hit $640.2 billion up 2.9% compared to last year. And the reason for that modest bump? Chips. In November, semiconductors accounted for 28.3% of total exports, a staggering leap from the early 2000s when they made up around 10%.
The growth isn’t just a fluke. Demand for AI infrastructure has created a tidal pull for high-performance memory and logic chips, and South Korea home to giants like Samsung and SK hynix, is right in the middle of it.
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Most export sectors fall as semiconductors surge
While chips climb, nearly everything else is sliding downhill. Combined exports from other major industries dropped 1.5% year-over-year to $487.6 billion. Key sectors saw sharp declines:
- Machinery: down 8.9%
- Displays: down 10.3%
- Petroleum products: down 11.1%
- Petrochemicals: down 11.7%
Still, a few held their ground or managed gains. Ship exports spiked by 28.6%, while automobiles inched up 2%. Computers crept up by just 0.4%.
Semiconductor momentum may extend into 2026
Deputy Trade Minister Kang Kam-chan doesn’t expect the chip wave to slow anytime soon. In fact, he predicts continued growth in semiconductor exports well into 2026, especially as AI demand intensifies.
That’s music to Samsung’s ears. The tech titan’s Device Solutions division, which handles memory and chip production, is already projected to post major profits in 2025. Rising DRAM prices could turn 2025 into a banner year for South Korea’s flagship chipmaker.
South Korea bets big on semiconductors for the long haul
For now, the nation’s economy is doubling down on silicon. Chips have gone from being a strong segment to an economic lifeline. As other sectors sag, semiconductors aren’t just leading, they’re saving the scoreboard. If the pace holds, South Korea could rewrite its export record books in 2025 and again in 2026.
