South Korea July exports surge on AI chip demand

South Korea's exports grew 62.8% year-on-year in July to $98.89 billion, beating forecasts of 59.0% and marking the second-strongest annual growth since the streak began in June 2025. Semiconductor exports jumped 179% and computer exports surged 404%, driven by robust global demand for AI infrastructure. The growth was supported by rising memory chip prices despite concerns over Apple's potential use of Chinese memory chips and new AI developments in China. Exports to China rose 96%, to the U.S. gained 69%, and to the Middle East increased 25%. Imports rose 26.5% to $68.56 billion, resulting in a trade surplus of $30.32 billion. The data follows a volatile month for South Korean markets, with the KOSPI falling 22% in July before staging a record rally on Friday. Samsung Electronics reported a more than 250-fold jump in chip profit and announced multi-year supply deals with data centre operators, expecting chip shortages to extend into 2028. SK Hynix reported strong earnings but fell short of lofty expectations, raising concerns about AI spending.