AI chip boom tripled South Korea's economic growth in the third quarter
South Korea's economy grew faster than expected in the third quarter. However, analysts warned that its heavy reliance on the chip industry leaves the country vulnerable to a slowdown in global AI spending.
South Korea's economy expanded by 1.0% in the third quarter, more than tripling its growth than initially expected, according to data from the Bank of Korea. The surge was driven by a sharp rise in semiconductor exports, which increased by 218.7% year-on-year to $148 billion. Additionally, investment in semiconductor production facilities rose by 4.1%.
This growth pattern marked the fastest expansion in nearly five years. However, economists caution that the economy's strong performance is heavily reliant on the semiconductor sector. The real gross domestic income surged by 18.8% year-on-year, its fastest increase in nearly five decades, fueled by higher semiconductor prices.
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