[Deep Dive] South Korea as the 'Winner of the Economy': Structural Leap Driven by AI and Semiconductors

FT Designates South Korea as the Global Economy's Winner

On June 8, 2026 (local time), the Financial Times (FT) evaluated South Korea as the "Winner of the global economy" in an article titled "Chips, Ships and Guns." This analysis highlights that the South Korean economy is strategically positioned at the intersection of three major global macroeconomic trends: the Artificial Intelligence (AI) revolution, the reorganization of supply chains among allies, and geopolitical rearmament.

In particular, defense exports are surging, and the shipbuilding industry is experiencing a boom centered on high-value vessels as demand from major countries like the US concentrates on South Korea, creating a strong trickle-down effect across the broader economy.

AI Supercycle and Upgraded Growth Forecasts

The most powerful engine driving the South Korean economy is undoubtedly semiconductors. As global big tech companies explosively increase investments in AI data center infrastructure, demand for advanced memory semiconductors, including High Bandwidth Memory (HBM), has reached an unprecedented peak. Consequently, semiconductor exports are repeatedly breaking records, and the positive impact is spilling over into the power equipment industry, such as ultra-high voltage transformers required for AI data center power supplies.

Driven by this robust export performance, the Bank of Korea recently revised its 2026 economic growth forecast upward from 2.0% to 2.6%. While major economies are experiencing a slowdown due to prolonged high interest rates, South Korea is proving its solid growth momentum based on its manufacturing competitiveness.

The Flip Side of the Leap: China's Technological Pursuit

However, despite the optimistic outlook, long-term risk factors remain. The FT pointed to "China's technological pursuit and intensifying competition" as the biggest threat to the South Korean economy. China's rapid advance beyond legacy processes into high-tech sectors is a key variable that could threaten the technological superiority of South Korea's flagship industries.

To maintain the title of "Winner of the Economy" in the long term, it is imperative to move beyond complacency with the current semiconductor cycle boom and focus on structural improvements through securing original technologies and diversifying the industrial portfolio.