South Korea forecasts 2026 economic growth at 5-year high on AI chip boom

South Korea pledged to swiftly advance artificial intelligence investments to support economic performance, alongside raising its 2026 growth forecast to a five-year high of 3.0% driven by a global semiconductor boom. The policy-and-growth combination is modestly supportive for the AI and semiconductor value chain, with potential upside for related risk appetite in the region.

Analysis

South Korea pledged to swiftly advance artificial intelligence investments to support economic performance, alongside raising its 2026 growth forecast to a five-year high of 3.0% driven by a global semiconductor boom. The policy-and-growth combination is modestly supportive for the AI and semiconductor value chain, with potential upside for related risk appetite in the region.