South Korea is raising its forecast for 2026 economic growth to 3%, citing a continuing boost from semiconductor exports linked to global demand for AI chips. The government’s revised projection follows an earlier January estimate of 2% and is presented as part of its economic strategy for the second half of the year. The outlook is supported by strong performance and record profits at major semiconductor companies, including Samsung Electronics and SK hynix, which have helped sustain export momentum.
The Korea Times reports that the Ministry of Finance and Economy expects the economy to grow at 3% in 2026 while also noting that support measures are intended to cushion potential downside risks, including those related to the conflict in the Middle East. It also says the outlook this year remains tied to AI-driven semiconductor demand.
Both outlets present the AI chip boom and semiconductor industry strength as the main drivers behind the upgraded growth outlook. They also indicate the forecast is more optimistic than projections from major international organizations, including the OECD and the International Monetary Fund, which forecast about 2.6% growth for the current year.
