Driven by demand for artificial intelligence, chip shipments and the overall economy improved, South Korea's exports continued to grow strongly in August, leaving the central bank with little reason to relax its newly adopted hawkish stance after two consecutive interest rate hikes. South Korea Customs said on Tuesday that the value of exports after adjustment for working days rose 72.5% year on year. Imports increased by 22.5%, and the trade surplus reached US$34.7 billion. Based on unadjusted data, exports increased 68.7% year over year, higher than the 63% increase for the full month of July after previous revisions. Semiconductors continued to be the main driver of South Korea's export growth in August. Data shows that despite high energy prices and geopolitical tension putting pressure on other industries, external demand remains strong, which further supports the Bank of Korea's decision to raise the benchmark interest rate by 0.25 percentage points for the second time in a row last week. Additionally, the central bank raised its 2026 economic growth forecast from 2.6% to 3.3%, freeing up more space for policymakers to focus on controlling inflation.

Driven by demand for artificial intelligence, chip shipments and the overall economy improved, South Korea's exports continued to grow strongly in August, leaving the central bank with little reason to relax its newly adopted hawkish stance after two consecutive interest rate hikes. South Korea Customs said on Tuesday that the value of exports after adjustment for working days rose 72.5% year on year. Imports increased by 22.5%, and the trade surplus reached US$34.7 billion. Based on unadjusted data, exports increased 68.7% year over year, higher than the 63% increase for the full month of July after previous revisions. Semiconductors continued to be the main driver of South Korea's export growth in August. Data shows that despite high energy prices and geopolitical tension putting pressure on other industries, external demand remains strong, which further supports the Bank of Korea's decision to raise the benchmark interest rate by 0.25 percentage points for the second time in a row last week. Additionally, the central bank raised its 2026 economic growth forecast from 2.6% to 3.3%, freeing up more space for policymakers to focus on controlling inflation.