Corea del Sud's economic growth has been underestimated by its own government due to inaccurate reporting of GDP figures. This is because the country's economy relies heavily on exports of semiconductor chips, which have increased significantly over the past few years.

The increase in export volumes was mainly attributed to higher sales of semiconductors, with a notable rise in revenue from $60.3 million in the previous month. Semiconductors now account for nearly half of all deliveries, highlighting their crucial role in driving national economic growth.

However, this trend has also led to an increasing dependence on foreign technology and materials, as well as rising costs associated with maintaining high levels of production efficiency. The industry faces significant challenges in meeting these demands while ensuring sustainable development.

The economic growth rate has been recorded at an average of 0.7% for the fourth quarter according to the median projections of economists, reaching its peak at 0.6% in the first quarter. The projections vary from 0.5% to 1.6%. 'The demand is whether we will see benefits from the sphere of exports. It's important to see how it reaches domestic economy and one of the key channels is fiscal policy to alleviate pressure,' said Park, Nomura Asia economist. 'Financial conditions are becoming less accommodating and the labor market is trending downward. For young workers adopting AI more quickly becomes very difficult to find work,' added Park.

The contrast between strong growth in chip exports and weak demand in South Korean economy has raised concerns among some economists that it could lead to an unbalanced economic recovery. On the forecast front, Pantheon Macro Economics economist Kelvin Lam said: 'The risk of dependent growth should concern the Bank of Korea somewhat, but I don't think they show too much'. A Reuters survey predicted a 3.5% increase in South Korean economy in 2026.