chips

AI chip boom yet to lift South Korea's wider economy, Nomura economist sees limited spillover

South Korea's AI-driven semiconductor boom has yet to meaningfully lift the broader economy, according to Nomura senior economist Park Jeong-woo. Semiconductor export strength is largely price-driven with unexceptional volume growth, and consumption remains mixed with luxury spending up but auto sales down. Nomura expects the Bank of Korea to raise rates in July to 3.25% due to financial stability concerns, despite inflation being supply-driven.