📊Executive Summary

South Korea achieved a historic milestone by surpassing $700 billion in annual exports for the first time, with semiconductor shipments leading the charge at $173 billion in 2025. This represents a significant 22.2% increase from the previous year, driven by strong demand from AI and data centers. The trade surplus of $78 billion underscores the importance of semiconductors to the South Korean economy, which accounts for over 40% of its GDP. As procurement teams assess sourcing strategies, the robust growth in semiconductor exports indicates a favorable environment for sourcing chips, but they should remain vigilant regarding potential geopolitical tensions and tariff implications....