South Korea Growth Forecast Rises to 3% on AI Chip Boom

The South Korea growth outlook has strengthened after major global investment banks raised their average 2026 economic growth forecast to 3%, supported by booming semiconductor exports driven by artificial intelligence demand.

The revised projections reflect growing confidence in the country's export-led recovery.

Data from the Korea Center for International Finance showed the average forecast from eight investment banks, including JP Morgan and Citi, increased from 2.8% in May and 2% at the end of last year.

JP Morgan lifted its forecast to 3.7%, while Citi raised its projection to 3.5%.

South Korea's exports reached a record USD102.25bn in June, with semiconductor shipments nearly tripling to USD44.82bn.

The Bank of Korea is now widely expected to raise its official South Korea growth forecast from the current 2.6% when it updates economic projections in August.