'Still Hesitant? If You're Wondering Whether KOSPI Will Rise, This Is the Number You Must Watch [Weekend Money]'

Semiconductors and China Drive Dual Momentum
Powerful Catalyst for the Korean Stock Market
Average Daily Exports Continue Upward Trend

The domestic export market continues its strong upward momentum, benefiting from two favorable factors: the ongoing 'super cycle' in semiconductors and a recovery in export momentum to China. In particular, as daily average export volumes show a solid upward trend, this is strengthening the fundamentals of exports and is expected to serve as a strong driver for further gains in the domestic stock market going forward.

On the 8th, containers were piled up at Pyeongtaek Port in Gyeonggi Province. Photo by Yonhap News

According to iM Securities on May 17, semiconductor exports from May 1 to 10 increased by 149.8% year-on-year, maintaining a robust export cycle. Thanks to this strong performance in semiconductors, the overall export growth rate during the same period reached 43.7% compared to a year earlier.

The growth trend in the daily average export volume is also clear. The daily average export value, which was around $2.8 billion in January, surged to $3.58 billion in April, and from May 1 to 10, it reached $3.69 billion. Given the historically high correlation between daily average export value and the KOSPI index, this is regarded as a positive signal for the domestic stock market.

Exports to China, which have previously been a stumbling block for Korean exports, are also recovering sharply. Last month, the export growth rate to China was 62.5%, the highest among major economies, and from May 1 to 10, it reached 81.8%, far surpassing the growth rate of exports to the United States (17.9%). The expansion of artificial intelligence (AI) related investments not only in the United States but also within China has led to an encouraging turnaround in Korea's trade balance with China from deficit to surplus. However, this polarization is evident as exports of products other than semiconductors remain relatively sluggish.

Park Sanghyun, a researcher at iM Securities, stated, "AI investments in both the United States and China have been stronger than expected, so the domestic semiconductor export market is likely to remain robust for quite some time," adding, "If the U.S.-China summit leads to a reduction in tensions, a butterfly effect could emerge that further strengthens the momentum of exports to China."

This content was produced with the assistance of AI translation services.