Global IBs raise Korea's growth outlooks on chip boom

Major global investment banks have raised their growth forecasts for South Korea, citing the strong semiconductor upcycle as a key driver. According to the Korea Center for International Finance, the median growth forecast for 2026 was raised from 3.3 percent in August to 3.5 percent in September. The average forecast for the Korean economy has been steadily increasing since April, rising from 2 percent at the end of last year to 2.1 percent in January, 2.4 percent in April, and 2.8 percent in May.

The upward revisions reflect expectations that the global semiconductor cycle will remain stronger and more resilient than previously anticipated. JP Morgan expects the Korean economy to grow by 4 percent this year, while Citi and UBS have raised their respective forecasts to 3.8 percent and 3.5 percent.

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