South Korea's export sector has maintained its robust growth trajectory in early August, offering fresh evidence that demand driven by artificial intelligence (AI) is fueling economic expansion and strengthening the rationale for additional interest rate hikes.

Data released by the Korea Customs Service on Friday showed that exports during the first 20 days of August surged 61.5% year-on-year on a working-day-adjusted basis. On an unadjusted basis, exports climbed 56%, while imports rose 19%, resulting in a trade surplus of nearly US$14 billion.

Semiconductors continued to spearhead the growth, with shipments soaring 198.8% compared to the same period last year. Computer-related products also saw a dramatic increase of 242.1%, whereas automobile exports experienced a notable decline of approximately 45%.

These figures will serve as a timely reference for the Bank of Korea's policy meeting scheduled for next week, where economists remain divided over whether the next policy adjustment should occur in August or October. Last month, the central bank's board members unanimously voted to raise the benchmark interest rate by 25 basis points to 2.75%, while maintaining a hawkish stance.