Capital Economics: Korea's semiconductor boom may cool within two years

Odaily Planet Daily News Capital Economics economist Marcel Thieliant stated that despite short-term upside risks to Korea's GDP growth, the semiconductor-driven economic boom in Korea could lose momentum within the next two years. The economist expects that the U.S. artificial intelligence investment boom will cool down by 2028, which could prompt Korean chip manufacturers to begin cutting capital expenditures, as the semiconductor industry is highly cyclical.

Thieliant noted that Samsung Electronics and SK Hynix have announced a total investment plan of 800 trillion won to build new chip manufacturing facilities in southwestern Korea, but the specific investment timeline has not yet been disclosed. He pointed out that in 2023, SK Hynix cut its capital expenditures by two-thirds as the post-pandemic electronics boom reversed. (Jin Shi)