South Korea economy to grow 2.5% in 2026 on semiconductor surge
The South Korean economy is projected to expand 2.5% in 2026, driven by robust growth in the semiconductor industry and a recovery in domestic consumption, the state-run Korea Development Institute (KDI) said on Wednesday, 13 May. The revised forecast marks a significant upgrade from the 1.9% growth projection issued in February 2026.
KDI Raises Forecast on Chip Strength
The KDI credited solid export performance — anchored by semiconductors — for the upward revision, noting that South Korea has sustained strong external demand despite headwinds including Washington's tariff policies. The think tank said chipmakers' ability to expand production capacity quickly could push growth even higher than the current projection.
