South Korea posted 3.6% GDP growth in Q1, up from 1.6% in Q4, as exports jumped 38% to a record $220 billion. AI‑driven memory chip sales supplied $31.9 billion of the $85.9 billion export total, pushing Samsung Electronics and SK Hynix past the $1 trillion market‑cap mark and into the global top‑20. The surge fuels a boom in semiconductors and supports rising consumer demand for AI services.

Shipyards are running at near‑full capacity. Hyundai Heavy Industries has secured 16 LNG carrier orders this year, double the volume slated for all of 2025, while the three biggest builders landed contracts worth $19.1 billion through mid‑May. In April the Pentagon launched a $1.85 billion feasibility study to outsource warship design to Korea and Japan, reflecting Washington’s shift away from a collapsing domestic fleet.

Defence exports rose 24% to a $75.5 billion backlog, highlighted by a $6.5 billion sale of fighter jets, rockets and tanks to Poland and new contracts with Peru, Norway and the UAE. Chaebol scale underpins the surge, but analysts warn China’s high‑tech push threatens Korean competitiveness beyond semiconductors. For now, the diversified export engine keeps the economy humming.