South Korea is witnessing a remarkable surge in exports to Taiwan, positioning the island nation as a crucial growth market amid declining shipments to traditional powerhouses like the United States and China. From January to May 2025, South Korean exports to Taiwan soared by 62.5 percent year-on-year, reaching an unprecedented $16.08 billion, according to data from the Korea International Trade Association. This figure marks the highest export volume to Taiwan for the first five months of any year, elevating Taiwan to South Korea's fourth-largest export destination, up from eighth place in 2015.
This shift comes at a time when South Korea's overall exports have dipped slightly by 0.9 percent, with shipments to the U.S. and China falling 4.4 percent and 5 percent, respectively. Taiwan's robust demand for advanced semiconductors, offshore wind infrastructure, and a resurgence in Korean consumer goods fueled by the Korean Wave (Hallyu) is offsetting the broader export slowdown.
Semiconductors remain the linchpin of South Korea's export strength to Taiwan. Memory chip shipments alone reached $8.46 billion in the first five months of 2025, accounting for 52.6 percent of total exports to Taiwan and marking a staggering 192.9 percent increase from the previous year. When combined with semiconductor manufacturing equipment, chip-related products represent 72 percent of all South Korean exports to Taiwan. Industry experts attribute much of this surge to SK hynix's high bandwidth memory (HBM) chips, which are packaged by Taiwan Semiconductor Manufacturing Company (TSMC) into AI accelerators for tech giant Nvidia in the United States.
The deepening semiconductor collaboration between South Korea and Taiwan was underscored in April 2025 when SK Group Chairman Chey Tae-won and SK hynix CEO Kwak Noh-jung visited Taiwan to meet with TSMC and other local chipmakers. SK hynix also took part in TSMC's technology symposium held in Santa Clara, California, signaling a strategic partnership that could reshape the semiconductor landscape.
Beyond chips, Taiwan's ambitious plans to develop 20.6 gigawatts of offshore wind power capacity by 2035 have opened new avenues for South Korean exporters. Electric wire products, crucial for such infrastructure projects, saw a phenomenal 307.6 percent increase in exports to Taiwan, reaching $168 million in the January-May period. LS Cable & System, a leading South Korean company, secured a 110 billion won ($80 million) contract in 2024 to supply submarine cables to Taiwan. Its subsidiary, LS Marine Solution, followed up with a cable-laying contract in April 2025. An official from LS Cable noted, "Shipments appear to have increased as construction of contracted volumes began in earnest this year," highlighting the tangible progress in these energy projects.
The rising tide of Korean consumer goods in Taiwan also reflects shifting market dynamics. While Japanese brands have historically dominated sectors like passenger vehicles and cosmetics, Korean products are steadily gaining ground. Exports of passenger vehicles jumped 33.3 percent to $142 million, and cosmetics shipments grew 16.2 percent to $130 million during the first five months of 2025. The Korea Trade-Investment Promotion Agency's Taipei office remarked, "Taiwan's car market is still largely dominated by Japanese brands like Toyota, but Korean cars are gaining popularity, and the influence of Korean pop culture through media is helping broaden the appeal of Korean consumer goods." This cultural wave, often referred to as Hallyu, appears to be translating into tangible economic benefits.
The rapid growth in exports to Taiwan is particularly notable given the broader context of escalating protectionist trade measures affecting global commerce. As South Korea grapples with slowing demand from its largest export markets, the United States and China, Taiwan's rising import appetite offers a vital lifeline. Among South Korea's top 30 export destinations, Taiwan recorded the highest growth in the first five months of 2025, underscoring its emerging role as a strategic partner in trade.
Industry analysts and government officials alike are optimistic that the current momentum will continue, potentially pushing total exports to Taiwan to record highs by the end of 2025. The combination of high-tech semiconductor exports, infrastructure-related products, and consumer goods creates a diversified export portfolio that enhances South Korea's resilience amid global economic uncertainties.
Moreover, the deepening ties between South Korean and Taiwanese semiconductor industries could have far-reaching implications beyond mere trade figures. With SK hynix and TSMC collaborating closely on cutting-edge chip technologies, including HBM chips integral to AI applications, the partnership may well drive innovation and competitiveness in the global semiconductor arena.
In summary, Taiwan's emergence as a key market for South Korean goods is reshaping trade patterns in East Asia. By capitalizing on Taiwan's growing demand for semiconductors, renewable energy infrastructure, and consumer products, South Korea is not only mitigating export declines elsewhere but also forging stronger economic bonds with a dynamic neighbor. This evolving relationship illustrates how shifts in global trade can open new opportunities, even amid challenges posed by protectionism and market slowdowns.
As South Korea navigates an increasingly complex global trade environment, Taiwan's role as a vital export partner highlights the importance of adaptability and strategic collaboration. Whether through the high-tech corridors of semiconductor manufacturing or the vibrant currents of cultural influence, the ties between these two economies are deepening, promising a future of shared growth and innovation.
