South Korea's exports in September continued to grow, driven by strong external demand, boosting the economy.

Preliminary trade data released on Monday showed that South Korea's export growth remained strong so far this month, highlighting that strong external demand is driving the South Korean economy. Customs data showed that in the first 20 days of September, exports increased by 18% year-on-year when adjusted for the difference in working days. Without considering holiday factors, South Korean exports decreased by 1.1% year-on-year, imports decreased by 4.5% year-on-year, and the trade surplus reached $800 million. This September, South Korea had the Mid-Autumn Festival holiday at the beginning of the month, leading to a larger difference between adjusted and unadjusted data than usual. Customs data showed that unadjusted semiconductor exports increased by 26.2% year-on-year, and semiconductors are the most profitable part of the country's exports. Other South Korean companies also play an indispensable role in the global supply chain, especially in industries such as automobiles and batteries. The government is currently seeking to help domestic construction companies and general contractors increase their technical expertise in port, road, and bridge construction to help them gain more profits from overseas infrastructure projects. This year's export rebound has fueled optimism, with the government expecting economic growth to accelerate. It also supports the view of the Bank of Korea that by keeping the benchmark interest rate at what it considers to be a restrictive level, the Bank of Korea has the ability to continue its actions to prevent a debt bubble. The Bank of Korea may change this stance at its meeting next month. Most economists expect the central bank to cut the benchmark interest rate from 3.5% to 3.25%, a level that has been maintained since early 2023. The Federal Reserve implemented a long-awaited policy shift last week, lowering the key interest rate by 50 basis points. The strong U.S. economy has helped offset the increasing demand for South Korean products from China, while the extreme summer weather has exacerbated these issues.