Driven by the chip boom, the Bank of Korea predicts that the country's economic growth will significantly increase this year.

The Bank of Korea said that, with the support of a booming chip industry and a stronger-than-expected global environment, the export-driven South Korean economy is expected to grow "significantly higher" than last year. The Bank of Korea told the parliament that the semiconductor market is showing a stronger cycle of prosperity than in previous upturns, and this trend is expected to continue throughout the year. The Bank of Korea will announce its latest economic growth and inflation forecasts on Thursday. Analysts expect the bank to raise its 2026 GDP growth forecast from 1.8% in November to around 2%. It is widely expected that policymakers will keep the benchmark interest rate unchanged at 2.5%. Preliminary data from the central bank shows that the South Korean economy grew by 1% last year.