South Korean Finance Minister Says Semiconductor Boom Will Continue At Least Until 2027

Statements by the Minister of Finance

South Korean Finance Minister Lee Hyoung-Il said the current semiconductor boom should extend at least until 2027. He explained that, according to his analysis, growth could be sustained "at least until next year", due to a significant gap between world demand and available supply, as well as to a production capacity still expanding. These statements were made at the annual summit of the International Monetary Fund and the World Bank in Bangkok.

Context of the semiconductor market

This statement comes at a time when flea-related shares fell sharply during the week, with investors concerned about possible interest rate increases and the rise of Chinese competitors. Among the South Korean titles affected were SK Hynix and Seoul Semiconductor, while American giants like Nvidia were also affected by the wave of sales.

Impacts on the South Korean Stock Exchange

Lee recalled that securities in the flea sector have fuelled significant volatility in the South Korean stock market throughout the year. He attributed these significant fluctuations to the higher share of the semiconductor industry in the national economy, compared to other countries. Despite these sudden movements, the minister stressed that the country's economy remains "solid".

Fiscal issues and fiscal outlook

In parallel with the effects on stock prices, the Minister highlighted the positive tax impact of the flea boom. According to him, the tax revenue expected for the current year exceeds the initial forecast, which will strengthen the country's medium-term fiscal position. He added that, thanks to this dynamic, South Korea will find itself in a more robust financial position.

Analysis and Looking Forward

At the same time, an opinion article in the Maeil Business Newspaper called on the government to prepare for a possible slowdown in the artificial intelligence boom. The author cites two experts who anticipate a "new wave of semiconductors" that could transform the memory market into a "red ocean" by 2029. This perspective highlights the uncertainties that may arise, even though the minister remains confident about the strength of the sector until at least 2027.

These factors show that, despite current volatility and external challenges, the semiconductor sector continues to play a central role in the South Korean economy, both in terms of growth and taxation.