South Korea's 17.1% GDP Surge Masks AI Chip Boom's Narrow Reach
Updated
Updated · South China Morning Post · Jun 23
South Korea's 17.1% GDP Surge Masks AI Chip Boom's Narrow Reach
3 articles · Updated · South China Morning Post · Jun 23
Summary
17.1% first-quarter nominal GDP growth — the fastest since 2002 — has intensified warnings that South Korea’s AI-led upswing is too concentrated to support the broader economy.
Samsung Electronics and SK Hynix sit at the center of the surge as key memory-chip suppliers for AI systems, leaving growth heavily tied to a small slice of industry.
Retail, services, construction and small businesses are struggling to keep pace, with policymakers pointing to shuttered storefronts and rising business failures in local shopping districts.
Kim Yong-beom, head of the Presidential Policy Office, said nominal GDP growth could top double digits this year but warned the boom may prove short-lived if gains stay concentrated among a few.