South Korea November exports beat forecasts, led by chips and autos

Core Insights - South Korea's exports increased by 8.4% in November, reaching $61.04 billion, surpassing market expectations of a 5.7% rise [1][2] - This marks the sixth consecutive month of export growth, driven by record semiconductor sales and a significant increase in auto exports following a U.S. trade deal [1][2] Export Performance - Semiconductor exports surged by 38.5% to a record $17.26 billion, fueled by strong demand for advanced chips used in data centers [2] - Auto exports rose by 13.7% due to the resolution of uncertainties regarding U.S. tariffs after a trade deal was finalized [2] - Shipments to China increased by 6.9%, while exports to Southeast Asian countries rose by 6.3%. However, shipments to the European Union declined by 1.9% [3] Economic Context - The Bank of Korea indicated it is nearing the end of its monetary easing cycle, raising its economic growth forecast for the next year due to strong semiconductor exports [3] - The South Korean economy grew at its fastest pace in a year and a half during the third quarter, supported by robust export performance despite challenges from U.S. tariffs [3] Import and Trade Balance - Imports rose by 1.2% to $51.30 billion in November, which was below the expected 3.4% increase [4] - The trade balance recorded a surplus of $9.7 billion, the largest since September 2017, compared to a surplus of $6.0 billion in the previous month [4]