Trend Korea's IT-led expansion broadening into other sectors of the economy

Summary

Korea's current expansion is concentrated in the IT sector, where chip-driven exports and investment remain strong while other industries lag. The Bank of Korea expects this strength to continue through the second half of 2026 while consumption, helped by the supplementary budget, keeps recovering steadily. As energy supply disruptions from the Middle East ease, weakness in non-IT sectors is also expected to diminish. In 2027 the spillover from the semiconductor upswing to other sectors is expected to become fully visible, with domestic demand and exports both firm. The bank also lists a larger trickle-down from the IT boom to other sectors as an upside risk to growth.