South Korea’s exports posted strong gains in early August as semiconductor shipments nearly tripled, driving the won to its highest level in months and reinforcing expectations for a second Bank of Korea rate hike on August 27. The won traded toward 1,382 per dollar amid a weaker dollar index pressured by US fiscal deficit concerns and Treasury bond-buyback efforts. Senior Deputy Governor Kwon Min-soo noted that economic fundamentals point to further won strengthening, citing stronger-than-expected growth and inflation above target. Unadjusted exports rose 56% year-on-year to $55.2 billion in the first 20 days of August, with imports up 19% and the trade surplus reaching about $14 billion. Semiconductor shipments hit $26 billion while computer-related products surged, though automobile exports declined. The data arrived ahead of the central bank’s policy meeting, where officials will weigh tightening against a pause. Renewed gains in US Treasury yields and geopolitical risks remain potential headwinds.