In August, South Korea’s exports maintained their strong growth momentum, with burgeoning demand for artificial intelligence (AI) technologies propelling chip shipments. This surge not only bolstered the overall economy but is also anticipated to underpin the Bank of Korea's hawkish monetary policy stance, following two successive interest rate hikes. Data released by South Korea's Customs on Tuesday revealed that, after adjusting for variations in working days, exports in August surged by 72.5% year-on-year. Imports, on the other hand, rose by 22.5%, resulting in a trade surplus of US$34.7 billion. When considering unadjusted figures, exports grew by 68.7%, while July's growth rate was revised upward to 63%. Semiconductors continued to be the primary catalyst for South Korea’s export growth. The data highlighted that, despite pressures from escalating energy prices and geopolitical tensions, external demand remained robust. This resilience further justifies the Bank of Korea's decision to raise interest rates by 25 basis points for the second consecutive meeting last week.