South Korea's exports continued robust growth in August, with artificial intelligence (AI) demand boosting chip shipments and the overall economy, likely supporting the Bank of Korea's hawkish stance after two consecutive rate hikes. According to data released by South Korea Customs on Tuesday, exports rose by 72.5% year-on-year in August after adjusting for working day differences, with imports up 22.5% and the trade surplus reaching 34.7 billions USD. Unadjusted exports grew by 68.7%, followi

South Korea's exports continued strong growth in August, with demand for artificial intelligence (AI) boosting chip shipments and the overall economy. This is expected to support the Bank of Korea in maintaining a hawkish stance after two consecutive interest rate hikes. Data released by South Korea's customs on Tuesday showed that, after adjusting for differences in working days, exports in August increased by 72.5% year-on-year, imports grew by 22.5%, and the trade surplus reached $34.7 billion. Unadjusted export growth was 68.7%, and the increase for July was revised to 63%. Semiconductors remained the main driver of South Korea's export growth. The data showed that despite rising energy prices and geopolitical tensions putting pressure on other industries, external demand remains resilient, supporting the Bank of Korea's decision last week to raise rates by 25 basis points for the second consecutive meeting.