Exports of Asia's fourth-largest economy rose 18% year-on-year to $54.7 billion in January, according to the South Korean Ministry of Trade, Industry and Energy on Feb. 1. / Newsis

South Korea’s exports rose for the fourth consecutive month in January, surging nearly 20% year-on-year as chip sales rebounded and shipments to China showed signs of recovery.

Korea’s exports jumped 18% from a year ago in January to $54.7 billion, rising for the fourth straight month since last October, according to data released by the trade ministry on Feb 1. This is the first time in 20 months since May 2022 (21.4%) that monthly exports recorded double-digit growth.

Imports fell 7.8% to $54.4 billion, resulting in a trade surplus of $300 million.

Export growth was driven primarily by a rebound in chip exports and solid automobile and machinery exports. Exports increased for 13 of the country’s 15 leading export items in January.

Semiconductor exports surged 56.2% to $9.4 billion last month, the biggest rise in six years since December 2017 (64.9%), continuing gains for the third straight month. Growth in sales of advanced memory chips, such as high-bandwidth memory (HBM), and a rise in memory chip prices contributed to the sector’s performance.

Automobile exports increased for the 19th consecutive month, reaching a record $6.2 billion in January, up 24.8% from a year ago. Sales of electric vehicles (EVs) continued to expand last month despite recent concerns that global demand for EVs is beginning to stall.

By region, shipments to China rose for the first time in 20 months to reach $10.7 billion, up 16.1% from a year ago. Exports to the U.S. jumped 26.9% to $10.2 billion, continuing a six-month growth streak. Korean exports to the U.S. had exceeded shipments to China for the first time in two decades last December, but China regained its position as Korea’s largest exporter in January.

“The conditions surrounding Korea’s export environment remain challenging, but key elements for export recovery are aligning perfectly,” said Trade Minister Ahn Duk-geun. He noted positive trends such as an ongoing trade surplus and an uptick in semiconductor exports. “The government is committed to supporting this gradual recovery, with hopes to reach record-high export performance this year.”