Moody's has raised its outlook for South Korea's economic growth rate to 3.5% this year. This is based on the continued increase in semiconductor demand and the competitive advantage of Korean memory chip companies. Moody's expects the semiconductor supercycle to last at least until mid-2027, and anticipates that government mega projects will lead to technological innovation and balanced development. In addition, Moody's forecasts an improvement in the South Korean government's fiscal soundness, but points out the need to address long-term fiscal burden issues such as aging.
