South Korea exports seen rising sharply again in April on chip boom: Reuters poll
· CNA · JoinRead a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST
SEOUL, April 29 : South Korean exports likely rose in April for an 11th straight month, with a surge in chip demand driven by artificial intelligence investment more than offsetting a hit from the Middle East conflict, a Reuters poll showed on Wednesday.
Import growth and consumer inflation were seen quickening due to high oil prices as the conflict in the Middle East has upended energy markets.
Exports from Asia's fourth-largest economy, a bellwether for global trade, were projected to have risen 45.3 per cent from a year earlier, according to a median forecast of 20 economists.
That would be slightly weaker than the previous month's increase of 49.2 per cent, which was the strongest year-on-year rise since August 1988, but still the second-fastest in the current gaining streak that started in June 2025.
CNA Games
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
Show More
Show Less
The trade-reliant economy delivered its strongest growth in nearly six years last quarter, smashing forecasts on booming chip exports, though rising risks from the Iran war threaten to cut into the record earnings.
Last week, chipmaker SK Hynix announced a record quarterly profit with a fivefold jump in its first-quarter earnings. Peer Samsung Electronics had projected earlier this month that its quarterly earnings would exceed its entire profit for last year.
"Exports are expected to post a fresh record high in April in terms of value, as they did in March, on a surge in chip exports," said Park Sang-hyun, an economist at iM Securities. "Despite the adverse effect of high oil prices, the robust semiconductor-led trend will continue in the second quarter."
In the first 20 days of this month, exports rose 49.4 per cent from a year earlier as semiconductor sales jumped 182.5 per cent. Exports of petroleum products rose 48.4 per cent, while those of autos and auto parts fell 14.1 per cent and 8.8 per cent, respectively.
"For the time being, there is a possibility of the impact of the Iran war being felt in a distorted manner due to the closure of the Strait of Hormuz," said Chun Kyu-yeon, an economist at Hana Securities.
"While petroleum product exports are rising on higher prices, growth in crude oil imports is being limited due to supply disruptions, resulting in positive contribution to net exports."
In the monthly survey conducted during April 23 to 28, imports were projected to have risen 14.5 per cent this month from a year earlier. This would be faster than the increase of 13.2 per cent last month and the fastest since September 2022.
Consumer inflation was also seen accelerating to 2.6 per cent in April from 2.2 per cent in March, which would be the fastest year-on-year increase since July 2024.
South Korea is scheduled to report trade figures for April on Friday, May 1, at 9 a.m. (0000 GMT) and inflation data on Wednesday, May 6, at 8 a.m.
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Sign up for our newsletters
Get our pick of top stories and thought-provoking articles in your inbox
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app