South Korea's consumer confidence climbed for the third consecutive month in July, according to the central bank on Tuesday, supported by robust exports and large-scale investment plans.

A survey by the Bank of Korea showed the July Composite Consumer Sentiment Index (CCSI) stood at 106.8, up 0.2 points from June. The index has been on an upward trend since May, remaining above the 100-point mark throughout this three-month period.

A reading above 100 indicates optimists outnumber pessimists, while a figure below 100 signals the opposite. In July, the sub-index measuring current economic conditions fell by 2 points from a month earlier to 84. The sub-index gauging expectations for future economic conditions held steady at 92.

The central bank stated, "Despite rising inflation and stock market volatility, strong chip exports, massive investment plans, and expectations of income growth have driven consumer confidence to maintain its upward trend for the third month in a row."

Earlier data revealed that South Korea's consumer prices in June rose 3.2% year-on-year, marking the highest increase since December 2023. In July, the benchmark KOSPI index fell nearly 20%, driven by foreign investor selling and concerns over the outlook for artificial intelligence (AI) infrastructure investments.

However, South Korea's exports remained strong in the first 20 days of July, surging 52.3% compared to the same period last year, with semiconductor exports nearly tripling. Major tech companies, including Samsung Electronics and SK Hynix, previously announced large-scale investment plans to expand memory capacity to meet growing demand.