The AI boom drives chip demand, South Korea's exports surged significantly in early February

South Korea’s customs authorities announced on Monday that, after adjusting for working day differences, exports in the first 20 days of February increased by 47.3% year-on-year, surpassing the 34% growth revised for the entire month of January. Unadjusted data showed exports up 23.5% year-on-year and imports up 11.7%, resulting in a trade surplus of $4.95 billion. Despite the report period including a three-day Lunar New Year holiday and fewer working days, overall trade data for February remained strong, indicating that, after removing calendar effects, export momentum remains robust. Driven by investments in artificial intelligence and data centers, chip exports surged by 134%, continuing a strong upward trend; computer peripheral exports grew by 129%, and petrochemical product exports increased by 11%. Meanwhile, car exports fell nearly 27%, and auto parts exports declined about 21%, reflecting ongoing industry adjustments under U.S. tariff policies. This suggests that South Korea’s export engine continues to be supported by the global artificial intelligence cycle, thereby buffering other industry weaknesses. (Cailian Press)