2025 Korea’s Economy Wrap-Up: 2.1% Inflation, $700 Billion in Exports, Samsung & SK Hynix Hit Record Highs

Consumer Prices See Lowest Rise in Five Years

According to the Korea Statistics Office’s report released on the 31st, the annual consumer price inflation for 2024 was **2.1%**. This is the lowest since 2020, when it was just 0.5%, during the peak of COVID-19. In December, prices rose by 2.3%, mainly driven by exchange rate effects that pushed up oil prices (6.1%) and imported agricultural and livestock products like bananas (6.1%) and kiwis (18.2%) [1].

While many still feel inflation is high, a weak won has contributed to rising costs for oil, bananas, kiwis, and other imported goods [1]. The government is working to stabilize the currency to help keep inflation in check.

Stock Market Closes at New Highs: Samsung & SK Hynix Reach Record Prices

On the 30th, Samsung Electronics closed at 119,900 won ($90), up 0.33%, and SK Hynix finished at 651,000 won ($490), up 1.72%, both hitting all-time highs [2]. Samsung’s stock has surged by 124.5% since the start of the year, while SK Hynix has skyrocketed by 279%, driven by a recovery in the memory chip market.

The KOSPI index dipped slightly by 0.15% to 4,214.17 but still gained 75% since January, showing strong growth for the year. The Korean stock market will be closed on New Year’s Day and reopen on January 2 [2].

Exports Hit Record $700 Billion, Concerns Over Semiconductor Dependency

This year, Korea’s total exports surpassed $700 billion for the first time, ranking sixth globally [3]. However, the growth was mainly driven by semiconductors, while exports of oil products, petrochemicals, displays, and secondary batteries declined by double digits [3].

• Secondary Batteries: Slower EV demand led to more canceled supply contracts [3]
• Oil Products: Decreased by double digits [3]

Looking ahead, the Korea Institute for Industrial Economics & Trade warns that U.S. tariffs in 2026 could reduce exports by 0.5%, with the government’s expansion policies projected to grow the economy by around 1.9%. The country remains heavily reliant on semiconductors, which poses ongoing structural risks.

What to Watch in 2026: AI Bubble, Exchange Rates, and U.S. Interest Rates

Next year, the stock market could be influenced by concerns over an AI hype bubble, rising USD/KRW exchange rates, and potential U.S. interest rate cuts [4]. The won is expected to fluctuate around 1,400 against the dollar due to the inverted interest rate environment, and U.S. IPOs like OpenAI could boost market optimism [4].

Meanwhile, Trump’s trade policies might shift from negative to positive, providing some relief. Samsung and SK Hynix are also expected to benefit from increased investments in hyperscale data centers [4].