South Korea eyes stronger growth as chip supercycle fuels economy, finance chief tells rating agencies

At the IMF and World Bank annual meetings in Bangkok, Finance Minister Lee Hyoung-il met separately with senior executives from Moody's, Fitch and S&P Global Ratings. He presented South Korea's latest economic data, noting a 3% growth forecast for the year supported by strong semiconductor exports and increased capital spending. Lee said the momentum is expected to strengthen over the medium to long term, backed by government-led megaprojects, a green transition and the Future Fund slated for launch next year.

He also emphasized policies aimed at reducing disparities in housing, employment and financial services, as well as narrowing gaps among businesses, generations, income groups and regions. The rating agencies expressed interest in how the government will use the surge in tax revenue from the chip supercycle, and affirmed South Korea's stable public finances. Lee complemented these talks with MOUs on AI cooperation with the European Bank for Reconstruction and Development and the Central American Bank for Economic Integration.