Key facts
- South Korea's presidential policy chief warned that the AI chip boom's success could lead to property speculation.
- He noted that excess liquidity has historically flowed into the property market.
- The chief expressed concern that the boom's benefits might be narrowly concentrated, impacting small businesses.
- South Korea's nominal GDP growth rate is expected to surpass double digits this year.
South Korea's AI-driven semiconductor boom has led to record highs in exports, corporate profits, and stock prices. However, Kim Yong-beom, chief of the Presidential Policy Office, expressed concern that the windfall might fuel property speculation and deepen inequality if its benefits remain concentrated among a small segment of society. He noted that while headline economic indicators are improving, with nominal GDP growth expected to exceed 10% this year, many local businesses, particularly in retail and services, are struggling. This suggests a broader concern about the uneven distribution of the boom's economic gains.