Chip-driven growth faces headwinds from weak domestic demand, high oil prices
Korea's economy is expected to maintain strong growth in the fourth quarter on the back of robust semiconductor exports, but weak domestic demand and rising oil prices are emerging as renewed risks, analysts said Sunday. The Organization for Economic Cooperation and Development (OECD) recently raised its 2026 economic growth forecast for Korea to 3.7 percent from its June forecast of 2.6 percent,…
Korea's economy is poised for continued growth in the fourth quarter, buoyed by strong semiconductor exports, analysts have reported. However, weak domestic demand and escalating oil prices pose emerging risks, experts warn. The Organization for Economic Cooperation and Development (OECD) recently upgraded its 2026 economic growth forecast for Korea to 3.7 percent, up from 2.6 percent, attributing the surge to robust industrial production and export growth.
This revision, the largest among the 20 major economies, underscores the pivotal role of semiconductor exports in Korea's economic resurgence. Similarly, the Asian Development Bank (ADB) has also raised its growth forecast for Korea to 3.2 percent, from 2.6 percent, citing strong export performance and corporate earnings fueled by the artificial intelligence (AI) boom.
Undoubtedly, strong export growth, primarily driven by semiconductors, has been instrumental in the positive outlook. August data from the Ministry of Trade, Industry and Resources revealed that Korea's exports surged to a record $98.25 billion, a staggering 68.7 percent increase compared to the previous year.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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