Lee Jae-myung Pledges Diversification Beyond Chips as South Korea Posts 0.6% Q2 Growth
Updated
Updated · Global Times · Jul 23
Lee Jae-myung Pledges Diversification Beyond Chips as South Korea Posts 0.6% Q2 Growth
3 articles · Updated · Global Times · Jul 23
Summary
South Korea’s 0.6% quarter-on-quarter growth in the second quarter beat expectations, but the expansion was driven largely by semiconductor exports, sharpening concerns over dependence on one industry.
June exports topped $100 billion for the first time, with semiconductor shipments nearly tripling to $44.82 billion, showing how strongly the AI chip boom is propping up trade and GDP.
Samsung Electronics and SK hynix now make up more than half of the KOSPI’s market capitalization, leaving the benchmark and related single-stock ETFs highly exposed to swings in global chip demand.
Lee Jae-myung last month pledged to build world-leading competitiveness across a wider range of industries, as policymakers try to revive traditional sectors, nurture new ones and spread growth beyond semiconductors.
For the export-reliant economy, broader trade access and stable regional supply chains can support that shift, but the report says lasting diversification will depend mainly on domestic structural reform.