South Korean economy’s growth likely picked up in Q3 on chip exports: Reuters poll

By Renusri K BENGALURU, Oct 23 (Reuters) South Korea s economy grew slightly faster in the third quarter than in April to June, as booming semiconductor exports and AI-related investment helped offset still-uneven domestic demand, a Reuters poll of economists ​showed. An AI-fuelled chip boom has supported South Korea s economy for years, but ‌has also made it increasingly reliant on chip exports, with the gains yet to spread widely through the domestic economy. Meanwhile, high borrowing costs and elevated household debt have weighed on household consumption. Exports rose 84% from a year earlier to a record $120.9 billion in September, led by a 262.8% surge ‌in ​chip exports to $60.3 billion. Semiconductors accounted for nearly half of ⁠total shipments, underlining the industry s outsized ⁠role in driving gross domestic product growth. The economy grew a seasonally adjusted 0.7% in the July-September quarter, according to the median forecast of 16 economists polled from October 14-23