AI boom sustains S. Korea's growth despite global headwinds: IMF official

What happened: An IMF senior official said South Korea is weathering global headwinds due to the AI boom, with the technology investment cycle unlikely to lose steam soon. Key numbers: IMF raised South Korea's 2026 growth forecast to 3.3 percent, up 0.7 percentage point from its July projection. Why it matters: The IMF cites strong semiconductor exports driven by AI infrastructure demand as offsetting Middle East war fallout, and sees AI investment continuing for a long time, though it flags risks of a stock market correction and current account adjustment if the boom falters.

An IMF senior official said South Korea is weathering global headwinds due to the AI boom, with the technology investment cycle unlikely to lose steam soon.

The IMF cites strong semiconductor exports driven by AI infrastructure demand as offsetting Middle East war fallout, and sees AI investment continuing for a long time, though it flags risks of a stock market correction and current account adjustment if the boom falters.