South Korea’s exports continued strong growth in September, driven by AI chip demand, boosting exports and fiscal improvement

(1) South Korea's exports in September continued strong growth, with global artificial intelligence demand further driving semiconductor exports. As a result, the market expects that, despite rising interest rates, this highly trade-dependent economy will remain resilient. (2) Data released by South Korean customs on Thursday showed that, after adjusting for working days, South Korea’s September exports rose by 104.9% year on year. (3) South Korean customs stated that in the first nine months of 2026, South Korean exports reached $814.5 billion, surpassing the $800 billion mark for the first time and setting a new historical high. (4) The chip boom is also transforming South Korea’s government fiscal situation. South Korea expects national tax revenue this year to reach a record 478.6 trillion won (about $353 billion), an increase of 28% compared to 2025, mainly driven by semiconductor company profits, special dividends from chip companies, an active stock market, and consumption recovery. (5) Continued strong exports are also improving South Korea’s external balance of payments and may further support the appreciation of the won, thereby curbing imported inflation and giving policymakers greater flexibility when deciding on the next rate hike.