SOUTH KOREA HITS RECORD SURPLUS ON CHIP EXPORTS

South Korea's trade performance reflects robust demand for its chips, a cornerstone of the nation's export economy. Semiconductor shipments led the surge, capitalizing on global demand for advanced processors and memory chips. The broader current-account surplus—which measures the flow of goods, services, and investments—expanded beyond previous records. Shipments to key markets in Asia and the United States drove growth across multiple sectors. However, regional instability created headwinds for equity markets. Foreign investors reduced their holdings of South Korean stocks amid escalating Middle East tensions, signaling concern about broader economic disruption. The mixed signals highlight South Korea's dependence on semiconductor exports for growth, even as geopolitical risks weigh on investor sentiment. The country remains a critical player in global chip supply chains.