Key facts
- Major global investment banks raised their average forecast for South Korea's 2026 growth to 3 percent.
- Strong semiconductor exports are driving the increased growth forecast for South Korea.
- The AI boom is contributing to the demand for South Korean semiconductor exports.
- South Korea and Singapore have started the second round of FTA upgrade talks.
- The FTA talks are scheduled to last for two days.
- The negotiations are taking place in Seoul.
- Discussions include strengthening trade in supply chains.
- The green economy is a focus area for the FTA upgrade.
- Aviation MRO is also a sector targeted for enhanced trade ties.
Major global investment banks have collectively raised their average forecast for South Korea's economic growth in 2026 to 3 percent. This upward revision, reaching 3 percent for the first time, is primarily driven by strong semiconductor exports, which are benefiting from the ongoing artificial intelligence boom. The current forecast represents a significant increase compared to previous projections made by these financial institutions.