Preliminary data released Monday showed that South Korea’s exports rose 60.4% from a year earlier during the first 20 days of June. So far, adjusted exports are up nearly 50%, roughly matching May’s hot pace of 52.6%.
This increase, driven largely by demand for artificial intelligence, has not only increased the country’s trade surplus, but also increasingly drawn investor money away from risky assets like cryptocurrencies.
Recent trade data shows that South Korea’s exports have risen at some of the fastest rates in modern history. The country’s exports totaled $62 billion, up from $38.6 billion in the same period in 2025, according to customs data.
At the heart of this export explosion is South Korea’s semiconductor industry. Memory chip exports rose on the back of global spending on AI infrastructure, as did major producers Samsung Electronics SK Hynix benefits from record global demand.
The latest results in South Korea also show that imports reached $44.5 billion (up 23.2%), resulting in a trade surplus of $17 billion.
What do South Korean authorities think about the semiconductor boom?
Strong global spending on artificial intelligence and data centers is driving demand for exports. This data shows once again that chip sales are there Anchoring South Korea’s growth and balancing the weaker sectors.
Semiconductor shipments outperformed all other sectors, rising 188.4% year over year. South Korea earned as much as $25.5 billion from chips alone. Exports of computer products rose 293.3%, while oil shipments rose thanks to high energy markets.
Samsung and SK Hynix still dominate the production of high-bandwidth memory (HBM) chips that power the AI data centers of tech giants from Microsoft to ByteDance.
Policymakers are examining the systemic effects of a sustained boom in the semiconductor sector that has stimulated growth, tax revenues, and asset markets. However, the weak won and rising oil prices prompted the central bank to take a tougher stance. According to Governor Shin Hyun-sung, the benefits of the semiconductor boom are finally trickling down to the broader economy through increased profits, spending and investment.
He warned that the chip boom could complicate inflation, because huge technological payoffs could lead to higher wages and consumer spending. Since inflation reached a two-year high of 3.1% in May, the Bank of Korea has been leaning more towards tightening monetary policy.
On the other hand, other geographic data highlights strong demand, with exports to China expanding by 86.9% to $13 billion, and US demand rising by 53.9% to $11.4 billion. Trade with Vietnam and the European Union also increased by 75.5% and 13.6%, respectively.
JPMorgan warns that the semiconductor industry is becoming too crowded
However, recently, the quantitative analysis team at JPMorgan has noticed that semiconductor trading has become incredibly volatile crowdedWhich makes it vulnerable to sudden withdrawals due to increased volatility.
The combination of higher exposure and volatility means more frequent market shocks for semiconductors, underscoring how quickly positions can collapse based on early June data, analyst Nikolaos Panigirzoglou said in a note Thursday.
JPMorgan noted that the rapid growth of the chip sector in major stock indices raised major structural concerns. The first is concentration risk. Since semiconductor stocks now dominate major indices, Panigirtzoglou noted that funds with strict risk limits may have to systematically sell when those limits are reached.
Moreover, the bank noted that the ratio of the market capitalization of chip stocks to their revenues has increased to more than 6 times. That’s more than double the same measure for the Magnificent Seven, compared to Broadcom rather than Tesla.
JPMorgan also warned of near-term technical risks: portfolio rebalancing at the end of the quarter. The bank expects the June adjustments to result in a dumping of stocks and bond purchases worth $165 billion, which could lead to increased volatility if semiconductor stocks decline.
Additionally, the bank pointed to cryptocurrency markets as a potential vulnerability, noting that many Bitcoin mining operations appear to operate on thin margins and are increasingly reliant on stable Bitcoin prices.
Although the bank refrained from predicting an imminent market correction, it warned that heavy positions, extended valuations and high volatility set the stage for more severe and frequent semiconductor withdrawals.
