According to the latest data from South Korean customs, exports since February have shown a trend of losing growth momentum. Although exports increased by 16% year-on-year without adjusting for working days, the working day-adjusted export figures fell by 2.7% year-on-year. This change is partly due to the fewer working days in the same period last year. This year, the Lunar New Year holiday fell in January, whereas it was in February last year, leading to statistical discrepancies.
Despite the boost from the global AI boom, particularly in the semiconductor industry led by SK Hynix and Samsung Electronics, South Korea’s overall exports remain under pressure. The trade policies of the Trump administration, especially tariff threats, have cast a shadow over South Korea's trade prospects. The Trump administration announced a 25% tariff on all steel and aluminum imports starting March 12 and plans to announce reciprocal tariffs on multiple trade partners in April, increasing the risk of a global trade war.
As a significant hub for global semiconductor production, South Korea's economy heavily relies on exports, especially in electronics and chips. However, with escalating global trade tensions, South Korea's exports and economic growth might face greater challenges. The economic outlook for 2025 has thus become more uncertain, with domestic political unrest adding to economic instability.
