South Korea has achieved a record high in monthly semiconductor exports, despite facing increased pressure from US tariffs and restrictions. According to government data, the country’s semiconductor exports reached $15 billion in August, marking a significant increase of nearly a third from the same period last year. This surge can be attributed to strong demand from China and the exemption of chips from tariffs.
The country’s other major exports, including cars and shipbuilding, also performed well, with auto shipments reaching $5.5 billion and ship exports reaching $3.14 billion. These figures represent the strongest August performance for these sectors. Driven by these strong export figures, South Korea’s overall exports reached $58.4 billion, the highest ever recorded for the month of August.
However, exports to the United States dropped by 12 percent from the previous year to $8.74 billion, due to the impact of tariffs on steel, auto, and machinery shipments. South Korea was initially subject to a 25 percent across-the-board tariff by the United States but managed to secure a reduced 15 percent rate. Nevertheless, 50 percent duties remain in place on certain key exports, such as steel and aluminum.
The strong export figures reflect the solidity of South Korean companies’ competitiveness and their determination to export, despite challenging external conditions. To mitigate the damage inflicted on small and medium-sized firms by US tariff measures, the government plans to announce a support package in early September.
Despite the robust semiconductor export figures, shares of South Korea’s tech giants, including Samsung Electronics and SK Hynix, declined on Monday. This followed a US Commerce Department announcement that it would revoke waivers allowing these firms to use American technology in their Chinese operations. The waivers will remain in place for 120 days, after which Samsung and SK Hynix will be restricted to manufacturing only older-generation chips in China.
The US Commerce Department’s decision aims to close a loophole that allowed foreign companies to export semiconductor manufacturing equipment and technology to China without a license. Both Samsung and SK Hynix rely heavily on their Chinese operations for mainstream semiconductor production. The impact of this decision on the companies’ operations and the broader semiconductor industry remains to be seen.
