Bank of Korea Gov. Shin Hyun-song speaks at a press conference following a Monetary Policy Board meeting at the central bank's headquarters in Seoul, Thursday. Korea Times photo by Shim Hyun-chul
The Bank of Korea (BOK) raised its 2026 growth forecast to 2.6 percent from its previous projection of 2 percent, Thursday, citing a robust outlook for the country's semiconductor exports amid the global artificial intelligence (AI) boom.
The central bank viewed continued strength in the chip sector as outweighing the economic downturn risks stemming from the prolonged conflict in the Middle East.
"The sustainability of the current improvement in growth will ultimately depend on how long the current semiconductor cycle lasts," BOK Gov. Shin Hyun-song said during a press conference.
"There are expectations that the semiconductor cycle would remain strong for a considerable period, as chip prices could stay elevated and semiconductors are not products whose supply can be ramped up quickly in the short term," he added.
