KDI Lifts South Korea 2026 Growth View to 3.2% as AI Chip Boom Drives Exports
Updated
Updated · mbiz.heraldcorp.com · Aug 19
KDI Lifts South Korea 2026 Growth View to 3.2% as AI Chip Boom Drives Exports
3 articles · Updated · mbiz.heraldcorp.com · Aug 19
Summary
KDI raised South Korea’s 2026 growth forecast by 0.7 percentage point to 3.2% and lifted its 2027 view to 2.2%, saying AI-driven semiconductor demand is boosting the economy more than expected.
Exports are now seen rising 8.7% this year and facility investment 7.9%, with KDI citing a stronger global memory-chip cycle and expanding AI infrastructure spending as the main drivers.
The upgrade comes with a warning that the gains are narrow: KDI cut its employment-growth forecast by 60,000 to 110,000, while private consumption was raised only slightly to 2.3%.
Construction investment is expected to grow just 0.1% this year, and KDI said weak hiring in construction, non-chip manufacturing and services is limiting the spillover to household incomes.
KDI also flagged South Korea’s rising dependence on semiconductors as a risk, though Moody’s separately raised its 2026 growth forecast to 3.5%, reinforcing the brighter chip-led outlook.