South Korean finance minister sees chip boom lasting at least through 2027

South Korean Deputy Prime Minister and Finance Minister Lee Hyeong-il (이형일) expects the semiconductor industry's growth to continue at least through 2027, according to Korean reports of an interview with CNBC. He spoke in Bangkok on October 17 while attending the annual meetings of the International Monetary Fund and World Bank, the outlets reported. Lee said the gap between semiconductor demand and supply remained very large and production capacity was still being expanded, providing a basis for his view that the growth could last at least another year. [ 1 , 2 , 3 ]

The remarks came after semiconductor shares fell sharply during the week. Newsis and Chosun Ilbo attributed the declines to concerns about possible interest-rate increases and stronger competition from Chinese companies. They reported falls in South Korean chip shares including SK Hynix, as well as US companies including Nvidia. Lee said the semiconductor industry accounted for a larger share of South Korea's economy than in other countries, helping explain increased volatility in its stock market this year. Despite those fluctuations, he described the economy's underlying conditions as solid. [ 1 , 2 , 3 ]

Lee also linked the semiconductor boom to an improvement in government revenue. He said tax receipts this year were expected to exceed the government's original projection and that the industry's strength would ultimately make South Korea's fiscal position more robust. Alongside that outlook, Newsis reported CNBC's account of calls within South Korea to prepare for a possible slowdown after the AI and semiconductor boom. That account raised the possibility that competition in the memory chip market could intensify around 2029. Lee's near-term forecast remained based on demand continuing to exceed supply while capacity expands. [ 1 , 2 , 3 ]