South Korea Posts $3.8 Billion China Surplus as AI Chip Exports Jump 243%
Updated
Updated · South China Morning Post · Jun 3
South Korea Posts $3.8 Billion China Surplus as AI Chip Exports Jump 243%
1 articles · Updated · South China Morning Post · Jun 3
Summary
May data showed South Korea’s trade balance with China widened to a US$3.8 billion surplus, a rare turnaround with its largest trading partner.
Semiconductor exports to China drove the shift, surging 243% from a year earlier as Chinese demand for memory chips tied to AI applications accelerated.
The improvement marks a sharp swing from a US$764 million deficit in December 2025 and a US$1.1 billion surplus in February, underscoring how quickly chip demand has reshaped trade flows.
South Korea’s gains contrast with broader East Asian pressure from Chinese competition and shifting tech supply chains; Japan’s export volumes to China are down 10% since 2022 and its trade deficit with China has reached 1.2% of GDP.
Analysts cautioned the boost may be short-lived, suggesting South Korea’s current edge depends heavily on a narrow AI-driven memory-chip cycle.