South Korea's monthly exports exceeded $120 billion for the first time, powered by seemingly insatiable demand for artificial intelligence semiconductors.

Preliminary data released Thursday showed that exports from Asia's fourth-largest economy rose 83.5% year-on-year in September to $120.94 billion.

Even though the month had fewer working days due to holidays, the export growth rate still outpaced the 68.7% increase recorded in August and also beat the forecast of 65.4% growth.

Imports climbed 26.0% to $71.09 billion, bringing the trade surplus at the end of the third quarter to a record $49.85 billion.

That trade surplus surpassed the previous record of $35.91 billion set in June.

South Korea's trade data, widely regarded as a barometer of AI demand, indicate that strong appetite for chips shows little sign of fading amid a continued flood of investment into AI infrastructure.

The country's semiconductor exports more than tripled year-on-year in September to $60.3 billion, setting another record high.