South Korea’s trade balance with China turns positive and widens in 2026, driven largely by stronger semiconductor shipments amid global AI-related demand. South Korea’s Ministry of Trade data show the country’s deficit with its largest trading partner narrows and then reverses: it stands at a $764 million deficit in December 2025, shifts to a $1.1 billion surplus in February, and expands further to a $3.8 billion surplus in May. Multiple reports link the improvement to increased exports of memory chips to China. The reports cite market data indicating that AI-driven demand tightens supply and pushes prices sharply higher, including gains for 16GB DDR5 memory and NAND flash prices. In May, South Korea’s semiconductor exports to China rise 243% from a year earlier, according to the same ministry data. The news coverage notes that this improvement contrasts with the situation in other East Asian economies that have faced greater competitive pressure from China and ongoing supply-chain shifts.