The South Korean government lifted its 2026 growth forecast by one percentage point to 3% on Tuesday, expecting a stronger performance driven by upbeat performances from major memory chipmakers as artificial intelligence demand soars.
Record profits from semiconductor giants Samsung Electronics and SK Hynix – whose advanced memory chips are essential for the fast-evolving AI sector – have fuelled optimism over the country's economic outlook.
The government has unveiled an ambitious economic agenda and has said it plans to invest an expected windfall from tech giants' taxes into public projects.
"We had initially projected this year's real economic growth rate at 2%, but we have now revised our forecast upward to 3%," Finance Minister Koo Yun-cheol told a Cabinet meeting Tuesday.
"Although exchange rate fluctuations could affect the outcome, per capita income is projected to remain around the $40,000 mark," Koo added.
