South Korea demonstrated unexpected resilience in March, with exports expanding by 3.1% year-over-year, totaling $58.28 billion, according to the trade ministry’s preliminary data. This outstripped a Wall Street Journal forecast that anticipated a 1.7% increase and came on the heels of a revised 0.7% rise in February. Asia’s fourth-largest economy managed to achieve this as uncertainties loomed around U.S. trade policies.
Imports also grew by 2.3%, reaching $53.30 billion, resulting in a trade surplus of $4.98 billion, a notable climb from February’s revised surplus of $4.15 billion.
The surge was powered significantly by a 12% rise in semiconductor exports, driven by strong demand for advanced memory chips. Other sectors such as smartphones and shipbuilding witnessed jumps of 14% and 52% respectively, while vehicle exports saw a slower growth of 1.2%, impacted by lukewarm interest in electric cars.
On the destination front, shipments to the U.S. increased by 2.3%. However, exports to China saw a decline of 4.1% amid broader tensions.
These trade figures emerge as South Korea navigates potential trade barriers. President Donald Trump has proposed ‘reciprocal duties,’ aiming to level U.S. tariffs, with an April 2 deadline set for unveiling these measures. Further, impending 25% tariffs on cars and auto parts target top auto exporters like South Korea, posing a risk of impeding the nation’s trade momentum. The measures could impose further pressures on electronics and semiconductor exports, challenging the tech-centric economy.
Seoul’s policymakers have consistently warned that new U.S. tariffs could create substantial challenges for South Korean exports, especially in its crucial automotive and technology sectors.
