A research report released by Huatai Securities reveals that South Korea's exports soared by 83.5% year-on-year in September, propelled by the robust performance of the AI supply chain and end-of-quarter shipment surges. This represents a significant uptick of 14.8 percentage points from August, with the daily average exports witnessing a remarkable 104.7% year-on-year growth.

Delving deeper, the narrowly defined AI supply chain, encompassing semiconductors and computers, emerged as the primary driver, accounting for approximately 90% of the export growth. Simultaneously, exports outside the AI supply chain also exhibited signs of recovery.

The stellar export performance translated into a substantial trade surplus for South Korea, reaching USD 115.3 billion in the third quarter. This surplus made a notable contribution of about 19.6 percentage points to the nominal GDP growth.

Looking ahead to the fourth quarter, the strong momentum in global manufacturing, coupled with sustained demand for the AI supply chain, is anticipated to continue underpinning South Korea's export growth. Nevertheless, given the rising year-on-year comparison base and diminishing increases in memory prices, the potential for further acceleration in South Korea's export growth may face constraints.