Annual growth in South Korean vehicle exports will accelerate in the third quarter from the second, the country's top business lobby group said on Monday.

Reuters, citing the Federation of Korean Industries (FKI), said auto exports are expected to grow 5% in the third quarter from a year earlier after an estimated 1.5% gain in the second.

The federation represents most large South Korean companies, including Hyundai Motor.

Confidence about economic growth and concerns about inflation led the central bank to unexpectedly raise interest rates on June 8, by 25 basis points to a three-year high of 4.25%, despite softening business and consumer sentiment, Reuters noted.