OECD Raises South Korea Growth Forecast on AI Semiconductor Boom

The Organisation for Economic Co-operation and Development has upgraded its South Korea growth forecast for 2026 to 2.6% from 1.7%, citing robust semiconductor exports driven by the global artificial intelligence boom.

The revised South Korea growth forecast reflects expectations that strong chip demand will continue supporting exports, investment and broader economic activity.

The OECD noted that South Korea’s exports surged 53% year on year to a monthly record of USD87.8bn in May.

Semiconductor exports rose 169.4% to an all-time high of USD37.2bn, supported by exceptional demand for AI-related memory products.

DRAM exports jumped 369.8% to USD18.6bn, while NAND flash exports increased 206.8% to USD1.7bn.

The OECD said continued strength in semiconductor production should support domestic investment and economic expansion.

However, the organisation expects growth to moderate to 1.9% in 2027 and forecasts inflation of 2.6% in 2026.

The upgraded South Korea growth forecast highlights the economy’s growing dependence on AI-driven semiconductor demand.