South Korea's export growth remains strong, supported by semiconductor demand.

Driven by strong demand for semiconductors, South Korea's export growth in April continued to be strong, despite escalating external risks such as geopolitical tensions in Iran pushing up energy prices. The Ministry of Trade, Industry and Energy announced on Friday that adjusted for differences in working days, exports soared by 48% year-on-year, while unadjusted exports also rose by 48%, slightly lower than the 49.2% growth in March. Imports in April increased by 16.7% year-on-year, resulting in a trade surplus of $23.8 billion. This data further confirms that South Korea's exports remain resilient even as external risks intensify. The Iran conflict has boosted international oil prices, raising South Korea's import costs and adding inflation pressure to its economy, which heavily relies on energy imports. For policymakers, the strong export performance combined with rising cost pressures presents a complex economic outlook.