Key facts
- South Korea's 2026 growth forecast raised to 3.3% by the IMF.
- AI infrastructure investment expected to continue for approximately 10 years.
- IMF advises prioritizing innovation and growth investment over debt-to-GDP ratios for growing economies.
- IMF views South Korea's planned Future Fund structure positively.
South Korea's economy is navigating global economic challenges, bolstered by the artificial intelligence boom, according to an International Monetary Fund (IMF) official. The IMF recently increased its 2026 growth forecast for South Korea to 3.3%, a 0.7 percentage point rise from its July projection, driven by robust semiconductor exports fueled by AI infrastructure demand. Choi Ji-young, executive director of the IMF's Asia and the Pacific Constituency Office, stated during a meeting in Bangkok on Thursday that AI-related investments are likely to persist for about a decade. He noted that while this boom offers fiscal advantages for South Korea, potential risks include stock market corrections and current account adjustments if the AI surge falters. The IMF official also advised countries experiencing economic growth to prioritize investment in innovation and growth, suggesting that South Korea's current growth forecast might be conservative.