Korea’s top 10 firms make up over half of exports for first time

(Yonhap)

South Korea’s export growth became increasingly concentrated among a handful of large conglomerates in the first quarter, as the global artificial intelligence boom fueled a surge in semiconductor shipments led by major chipmakers.

According to preliminary trade data by business type released Thursday by the Ministry of Data and Statistics, the country’s exports rose 37.8 percent from a year earlier to $219.9 billion in the January-March period.

Exports by large corporations jumped 52.9 percent, the fastest growth since the government began compiling the data in 2015. In contrast, exports by mid-sized firms increased 7.4 percent, while small businesses posted a 10.7 percent gain.

The widening gap underscored how South Korea’s export recovery has been driven largely by semiconductor-related industries dominated by major companies such as Samsung Electronics and SK hynix.

The top 10 exporters accounted for 50.1 percent of South Korea’s total outbound shipments in the first quarter, marking the first time their share exceeded half of overall exports. The figure was up 13.5 percentage points from a year earlier.

The export share of the top 100 companies also climbed 7.2 percentage points to 73.4 percent, highlighting growing concentration within the country’s trade structure.

Industry officials said the gains were led mainly by IT components and IT products, including semiconductors. Exports of mineral products also increased, while durable consumer goods declined.

Mid-sized firms saw export growth in IT parts, chemical products and consumer goods, while smaller firms posted increases in mineral products, IT components and nondurable consumer goods.

By workforce size, exports by companies with more than 250 employees rose 43.8 percent, far outpacing gains of 12.0 percent for firms with 10 to 249 workers and 11.8 percent for businesses with fewer than 10 employees.

By industry, exports in mining and manufacturing increased 42.2 percent, followed by wholesale and retail trade at 9.8 percent and other industries at 6.4 percent.

Imports rose 10.9 percent on-year to $169.4 billion during the quarter. Imports increased across all company sizes, including 8.6 percent for large firms, 13.5 percent for mid-sized companies and 14.5 percent for small businesses.