The International Monetary Fund (IMF) raises its outlook for South Korea’s economic growth in its latest projections, citing semiconductor and AI-related exports as key drivers. According to the IMF’s July World Economic Outlook update, South Korea’s forecast for this year increases to 2.6%, a 0.7 percentage-point upgrade from the IMF’s April projection. The IMF characterizes this as the largest upward revision among the 30 major economies it covers in the same set of forecasts. The revisions also extend to later years, with Korea’s 2027 growth forecast lifted by 0.4 percentage points to 2.5%. The IMF links the improvement to stronger exports of semiconductors and AI-related goods, which help offset economic drag from the conflict in the Middle East. More broadly, the IMF says global growth is influenced by two opposing forces: supply disruptions associated with the Middle East conflict and growth momentum tied to the AI technology cycle. In parallel, the IMF lowers its global growth forecast for 2026 by 0.1 percentage point to 3%.