Exports adjusted for differences in the number of working days grew 3.6% from a year earlier in the first 20 days of December, according to data released Monday by the customs office. That compared with a revised 13% gain reported for the full month of November.
Unadjusted shipments also gained 6.8%, while overall imports rose 0.7%, resulting in a trade surplus of US$3.8 billion.
Semiconductor exports climbed almost 42%, extending a recovery fuelled by artificial intelligence and data centre demand. Shipments of wireless communication equipment also increased nearly 18%.
Those gains helped outweigh falls in other sectors. Auto exports dropped 13%, and petrochemicals showed weakness tied to higher input costs and US protectionist measures.
“Stripping out semiconductors, the numbers still look weak, and it really underscores just how exceptionally strong semiconductors are,” said Barclays Bank Plc economist Bumki Son. “I still think we need to remain mindful of the risk that the monetary policy stance may not be neutral for most sectors of the economy excluding semiconductors.”
In late November, the Bank of Korea pivoted away from a clear “rate-cutting stance” to a more neutral position on policy as it held its benchmark rate at 2.5% and raised its 2026 growth outlook to 1.8%, citing solid exports and a steady recovery in private consumption.
Still, Governor Rhee Chang Yong noted that much of the improvement in the growth outlook was driven by gains in chips and IT.
Barclays said it expects exports to expand 2.1% next year, but excluding semiconductor-related exports, imports and investment, growth would only be about 1.1%.
That ongoing divergence in performance adds to the difficulties for policymaking at the BOK, already complicated by weakness in the currency and frothy property prices in the South Korean capital.
Seoul reached a landmark tariff deal with Washington in late October after three months of negotiations, capping US duties on Korean goods at 15%. Tariffs on Korean autos and auto parts were also retroactively lowered to 15% as of Nov 1, following the publication of an official notice in the Federal Register earlier this month.
While the deal lowered duties from levels President Donald Trump announced in the spring, rates remain well above the levels the country enjoyed under a previous free trade agreement.
The trade report comes as the Korean won plunged more than 8% against the dollar so far in the second half of 2025, stoking concerns about rising inflation.
Both core and headline consumer prices are now above the BOK’s 2% target, and the central bank has warned that prolonged currency weakness could add further pressure on import costs.
By destination, exports to China rose 6.5%, while those to the US slipped 1.7%. Shipments to Taiwan and Vietnam climbed 9.6% and 20.4%, respectively.