South Korea Lifts 2026 Growth Forecast to 1.9% as AI-Driven Semiconductor Boom Continues

Key Point

South Korea Lifts 2026 Growth Forecast to 1.9% as AI-Driven Semiconductor Boom Continues

What Happened

South Korea's state-run Korea Development Institute raised its 2026 economic growth forecast to 1.9%, citing strong semiconductor exports fueled by global AI demand. The revision comes as chip exports surged 137.6 percent in early February, with semiconductors now accounting for nearly a third of all exports. The institute cautioned that U.S. tariff policy uncertainty remains a significant downside risk.

Why It Matters

Relevant local update for readers.