Korea is now the world's second largest semiconductor supplier outpacing Japan's market share for the first time since Samsung Electronics began producing semiconductors in the 1980s.
Citing U.S. market research firm IHS Technology, the trade ministry said Korea's global market share in the semiconductor industry rose one-and-a-half percentage points, year-over-year, to top 16 percent in 2013.
The United States retained the number one position, dominating more than half of the world's market share.
Japan's dropped nearly 4 percentage points to settle at less than 14 percent.
However, industry analysts say Korea's semiconductor market still relies too heavily on memory chips.
They say Korea should focus more on enhancing logic chip technology, which is used to control electronic devices.