South Korea is poised to become the fourth country, after the US, China and Germany, to record $1 trillion in annual exports, with the milestone all but certain by mid-November.
The Ministry of Trade, Industry and Energy attributed the rise to sustained spending on computing infrastructure by major global technology companies competing for leadership in artificial intelligence.
Exports had already risen 83.7% year on year in September. Growth then accelerated in October, when overseas sales climbed 93.7% from a year earlier to $115.28 billion, slightly above the median 93.2% increase forecast in a Reuters poll of economists.
The October rise was the strongest since January 1974, according to the ministry, and was driven by investment in artificial intelligence computing infrastructure.
Semiconductor exports jumped 259.4% to $56.44 billion, while computer exports rose 496.6% to $5.85 billion as demand for servers used in AI services increased. Chip exports exceeded $50 billion for a second consecutive month. October was the second-highest monthly figure on record, behind September's $60.3 billion.
Other export categories also rose. Auto exports gained 18.1% to $6.55 billion, the highest figure for any October, while electrical equipment exports rose 74% to $1.99 billion, a monthly record.
Prices for key memory products moved higher alongside demand. The fixed price for DDR5 16Gb climbed to $50 in October from $40 in June, while 128Gb NAND flash rose to $30.6 from $28.8 over the same period.
Exports to China rose 133.6% to $26.98 billion in October. Shipments to the US climbed 185.8% to $24.9 billion, supported by demand for semiconductors, computers and electrical equipment used in AI infrastructure.
October's $115.28 billion in exports was the second-highest monthly total on record, after September's $121.1 billion. Average daily exports, adjusted for the number of working days, rose 76% to $5.24 billion.
The trade surplus reached $42.5 billion in October, topping $40 billion for a second straight month.
By the end of October, cumulative exports for January through October had surpassed $900 billion for the first time. Kim Jung-kwan, the Minister of Trade, Industry and Resources, said that continued exports of more than $110 billion in October made it increasingly certain that the $1 trillion annual mark would be reached within November.
The surge has come amid a less certain trading environment. The industry ministry said many small and medium-sized enterprises were facing difficulties from rising protectionism in major economies, shifts in global supply chains and geopolitical tensions in the Middle East.
Separately, Shin Hyun Song, governor of the Bank of Korea, said the central bank would maintain a tight monetary policy stance until it was confident inflation would return to its 2% target.
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