The AI boom continues to drive up chip demand, with South Korea's exports increasing by nearly fifty percent in the first 20 days of June.

Thanks to the sustained prosperity of the semiconductor industry, South Korea's exports remained strong in early June. According to data released by the South Korean Customs on Monday, after adjusting for differences in working days, the export value in the first 20 days of June increased by 49.7% compared to the same period last year, slightly lower than the 52.6% increase in May. Calculated by original data, exports increased by 60.4% year-on-year, imports increased by 23.2%, resulting in a trade surplus of $17.5 billion. The above data shows that external demand in South Korea remains strong, supported by the investment frenzy in Artificial Intelligence (AI) and data center related industries. This further confirms that semiconductors continue to be the main engine driving South Korea's economic growth, offsetting the weak performance in other economic sectors. Chip exports once again led the way, with a year-on-year increase of 188.4%. Export of computer-related products surged by 293.3%, while exports of petroleum products benefited from high energy prices. Currently, policymakers are evaluating the multiple effects brought about by the long-term prosperity of the semiconductor industry. This current boom not only supports economic growth, but also increases tax revenue and asset prices. In recent months, the Bank of Korea has shifted to a more hawkish stance, citing rising oil prices, depreciation of the Korean won, and continued economic resilience as inflation risks. Bank of Korea Governor Lee Ju-yeol pointed out that the prosperity of the chip industry is permeating the overall economy through the enhancement of corporate profits, consumption, and investment growth. Lee Ju-yeol stated at a briefing last week that the prosperity of the semiconductor industry may complicate the inflation outlook further, as record bonuses from large tech companies could lead to overall wage increases and consumer spending. South Korea's Consumer Price Index (CPI) increased by 3.1% year-on-year in May, the fastest pace in over two years, reinforcing the Bank of Korea's inclination towards tightening monetary policy. In terms of export destinations, South Korea's exports to China increased by almost 87% year-on-year, while exports to the U.S. rose by nearly 54%. Exports to China's Taiwan Province and Vietnam surged by 103.6% and 75.5%, respectively. Overall, semiconductor, panel, and petroleum product exports have shown strong growth, becoming the main drivers of export growth to various regions.