South Korea lifts 2026 growth forecast to 3% and unveils record 2027 budget amid AI chip boom

South Korea raised its 2026 economic‑growth forecast to 3 percent, the highest in five years, citing a surge in demand for AI‑driven memory chips from Samsung Electronics and SK Hynix. Finance Minister Koo Yun‑cheol said the stronger semiconductor boom also allowed the government to lift its 2027 fiscal budget to over 800 trillion won (about $531 billion), the largest ever, financed by higher tax receipts from the AI‑chip sector and a restructuring of existing spending.

The budget earmarks three “mega‑projects” – new chip facilities, AI data‑centre construction and physical‑AI initiatives – as top priorities. A new Future Response Fund will channel the excess tax revenue into youth, growth engines, regional development and talent. The finance ministry also highlighted record export performance, with July‑early semiconductor exports up 193 % year‑on‑year to $112 billion, pushing total export value to a historic $298 billion.

Separately, authorities reported $1.61 billion in illegal foreign‑exchange transactions through May, underscoring tighter market surveillance as the won weakens. The combined outlook points to a robust, AI‑driven growth trajectory for the country.