South Korea’s exports surged in May at their fastest annual pace in over four decades, driven largely by strong global demand for semiconductors fueled by AI investment.

Total exports rose 53.2% year-on-year to a record $87.75 billion, marking the 12th straight month of growth.

Chip exports jumped 169.4% to an all-time monthly high, while computer exports soared due to AI server demand, though automobile exports declined.

Shipments to both the United States and China increased sharply, while exports to the Middle East fell, Reuters has reported.

The country also posted a record trade surplus of $26.95 billion as imports rose more modestly.