The Korea Development Institute (KDI) on Wednesday raised its South Korea growth forecast for this year to 3.2% from 2.5% and its 2027 forecast to 2.2% from 1.7%, citing stronger-than-expected global artificial intelligence (AI) investment and memory chip demand. KDI expects exports to grow 8.7% this year and facilities investment 7.9%, while the current account surplus reaches about $360 billion, about $120.7 billion above its May forecast.

The institute said the gains remain concentrated in semiconductors, with private consumption forecast to rise 2.3% in 2026, construction investment just 0.1% and employment by 110,000 people. KDI said weak real wage growth