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Analysis The illusion of strength: South Korea’s AI chip boom hides deeper reform risksExport-driven growth sustains optimism and short-term confidence while slowing progress on fiscal and structural reform South Korea’s semiconductor exports are expected to reach an all-time high of over $165 billion this year, according to the Ministry of Trade, Industry and Resources this week, underscoring the country’s deepening dependence on a single sector that risks delaying critical structural reform. From January to September, chip exports totaled $119.7 billion, a 17% increase from a year earlier, accounting for 23% of all outbound shipments. The government credited the surge to strong demand for artificial intelligence (AI) servers and rising memory prices, portraying it as evidence of resilience despite tariff pressure and slowing global growth. Behind the optimism lies © Korea Risk Group. All rights reserved. |





