On August 19, news emerged that the Korea Development Institute (KDI) has upwardly revised its economic growth forecast for South Korea in 2026. The new projection stands at 3.2%, a notable increase from the 2.5% predicted in May. This adjustment is primarily attributed to the robust global demand for chips, which is anticipated to progressively bolster the domestic economy. The KDI's forecast outpaces both the South Korean government's estimate of 3% and the International Monetary Fund's (IMF) projection of 2.6%, which was unveiled last month.

Amid a backdrop where economists and policymakers are increasingly optimistic about economic prospects, the KDI is taking into account the surging demand for artificial intelligence (AI) and evaluating its long-term viability. The institute believes that the expansionary trend observed in the South Korean economy since the latter half of the previous year will persist. Specifically, it posits that the burgeoning AI demand will fuel growth in semiconductor exports, thereby mitigating the adverse effects of escalating import costs stemming from the Middle East conflict. Looking ahead, the KDI anticipates that South Korea's exports will expand by 8.7% this year and by 5% in the following year.