S. Korea's growth momentum to strengthen amid chip boom: finance minister

South Korea's Finance Minister Lee Hyoung-il has forecasted the nation's economic growth to strengthen due to the ongoing chip supercycle during discussions with officials from international credit rating agencies, his office announced on Sunday. Lee conversed individually with representatives from Moody's, Fitch, and S&P Global Ratings, alongside Marie Diron, James Longsdon, and Roberto Sifon-Arevalo, all prominent leaders in their respective agencies.

The Finance Minister shared South Korea's recent economic achievements, projecting a 3% growth this year, fueled by burgeoning chip exports and intensified facility investments. He further elaborated on the government's commitment to bolster future growth engines, such as three megaprojects and green transition initiatives, aiming to address economic disparities through measures supporting vulnerable groups in housing, employment, and financial services.

The credit rating agencies showed keen interest in how South Korea intends to utilize the substantial tax revenues from the chip supercycle, with the government unveiling details of the Future Fund, set to launch next year. These agencies acknowledged the semiconductor and AI sectors' supercycle as a crucial factor in South Korea's ability to manage other challenges, such as an aging population and the Middle East conflict.

The agencies maintained that South Korea's economic indicators and public finances remain stable, reaffirming their assessment of Asia's fourth-largest economy. Lee also met with officials from multilateral development banks, including the European Bank for Reconstruction and Development and the Central American Bank for Economic Integration, signing MOUs to expand cooperation in AI.