Merchandise exports accelerate in July

Latest reading: Merchandise exports rose 5.9% on an annual basis in July, following June’s 4.3% increase. July’s figure marked the best reading since December 2024 and exceeded market expectations. Once again, the uptick was driven by a surge in semiconductor shipments—the country’s main export item—due to solid AI demand. Moreover, car exports growth gained steam for the second successive month, as auto companies managed to reorient their exports to the EU and markets outside of the U.S.. Meanwhile, merchandise imports expanded 0.7% over the same month last year in July (June: +3.3% yoy). As a result, the merchandise trade balance deteriorated from the previous month, recording a USD 6.6 billion surplus in July (June 2025: USD 9.1 billion surplus; July 2024: USD 3.6 billion surplus). Lastly, the trend improved, with the 12-month trailing merchandise trade balance recording a USD 59.7 billion surplus in July, compared to the USD 56.7 billion surplus in June.

Panelist insight: Commenting on the outlook, Nomura’s Jeong Woo Park stated: “T?here is now more clarity following the agreement with the US of a 15% tariff on goods imports from Korea, though the tariff on chips needs to be finalized in coming weeks, and as a result the full impact of the tariff shock on exports will be more evident in coming months. Some market participants are concerned that payback from frontloading may hit exports in H2, but as we believe global AI investment is gaining momentum, we expect AI-led demand to help export growth remain resilient in coming months.”

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