Record electrical equipment exports
South Korea's electrical equipment exports reached a record high as expanding investment in artificial intelligence (AI) data centers increased demand for power infrastructure. With demand rising for power equipment such as transformers, wires and cables, October exports reached $1.99 billion, up 74% from the same month a year earlier.
The Ministry of Trade and Industry said on November 1 that electrical equipment exports totaled $1.99 billion in October, setting a monthly record.
The figure surpassed the previous record of $1.83 billion, set in September, after just one month and was $270 million higher than the $1.72 billion recorded in July this year.
The main factor behind the export increase was expanding global investment in AI data centers. Data centers require power supply, conversion, transmission and distribution equipment to operate large numbers of servers reliably.
The Ministry of Trade and Industry explained that increased demand for transformers, wires and cables for AI data centers contributed to the growth in electrical equipment exports.
Strong demand from the United States
Demand for power infrastructure was particularly strong in the United States. Electrical equipment exports to the United States from October 1 to October 25 totaled $600 million, up 160% from the same period a year earlier.
Semiconductor and computer exports to the United States during the same period also increased by 497% and 816%, respectively, continuing the growth in exports of AI-related products.
Growth in the AI industry was also reflected in exports of semiconductors and server storage devices. Semiconductor exports in October totaled $56.44 billion, up 259.4% from the same month a year earlier.
Computer exports also rose 496.6% to $5.85 billion, supported by increased investment in server infrastructure and growing demand for server solid-state drives (SSDs).
Overall exports and trade balance
Overall exports continued to grow. October exports totaled $115.28 billion, up 93.7% year on year and the second-highest monthly figure on record.
Exports excluding semiconductors also increased by 34%, with growth recorded in 18 of the 20 major export categories.
Imports rose 36.0% year on year to $72.78 billion, resulting in a trade surplus of $42.5 billion.
Cumulative exports from January through October this year totaled $930 billion, exceeding $900 billion for the first time. A further $70 billion is needed to reach annual exports of $1 trillion.
Minister of Trade and Industry Kim Jung-kwan said, “With our exports continuing their solid growth in October at more than $110 billion, annual exports are now virtually certain to reach $1 trillion during November.” Kim added, “We will strengthen trade cooperation with major countries to minimize the uncertainties facing our companies and help small and medium-sized enterprises and mid-sized companies share in the benefits of export growth.”
Original Korean article: safemoney.co.kr
English brief by Korea Wind Intelligence, koreawindintel.com
