📊Executive Summary

The South Korean economy is projected to grow by 1.7% in 2026, driven primarily by an increase in semiconductor and shipbuilding exports. The Korea Economic Research Institute forecasts a 0.8% rise in exports, with strong demand for semiconductors fueled by investments in AI and data centers. However, domestic demand remains sluggish, with only a 1.6% increase in private consumption anticipated. Challenges in traditional manufacturing and construction investments are expected to persist, affecting overall economic recovery....