South Korean minister: Chip boom will last until 2027 — CNBC

South Korean Finance Minister Lee Hyoung-il said in Bangkok that growth in the semiconductor market could continue at least until 2027. According to him, demand for chips still significantly exceeds supply, although manufacturers are expanding capacity. Demand outpaces supply Lee told CNBC on the sidelines of the annual meetings of the International Monetary Fund and the World Bank in Bangkok that the country expects to sustain such growth at least through next year.

He attributed the forecast to a significant gap between semiconductor demand and supply, while noting that supply continues to expand. The statement came after a sharp decline in shares of semiconductor-sector companies during the week. Investor sentiment was affected by concerns over higher interest rates and intensifying competition from Chinese companies.

The sell-off included shares of South Korea's SK Hynix and Seoul Semiconductor, as well as U.S.-based Nvidia. More current news is available on the UA.News Telegram channel Telegram . Impact on South Korea's economy Lee noted that shares of chip manufacturers have amplified fluctuations in South Korea's stock market this year.

He linked this to the semiconductor industry's larger share of the country's economy compared with other states. At the same time, the minister described South Korea's economy as strong. According to him, the industry's development will also contribute to higher tax revenues: the country expects to collect more taxes this year than initially projected.

Lee added that South Korea's fiscal position will ultimately strengthen thanks to the semiconductor-sector boom. At the same time, a columnist for the South Korean newspaper Maeil Business Newspaper urged the government to prepare for a future slowdown in the artificial intelligence boom.

The column said that, according to estimates by two experts, the memory market could face a significant influx of new semiconductor supply by 2029.