Korea Tells Rating Agencies Chip Boom Will Strengthen Growth Momentum

South Korea’s economic growth momentum is expected to strengthen as a semiconductor upcycle supports exports and investment, Finance Minister Lee Hyoung-il told senior representatives of the world’s three major credit rating agencies during meetings in Bangkok.

Lee met separately with officials from Moody’s, Fitch Ratings and S&P Global Ratings on the sidelines of the annual meetings of the International Monetary Fund and the World Bank Group. The discussions offered Seoul an opportunity to explain its economic outlook and fiscal position directly to institutions whose sovereign assessments influence borrowing conditions and investor confidence.

The minister said South Korea is projected to record growth in the 3 percent range this year, supported by strong chip exports and increased facility investment. He argued that the momentum should become firmer over the medium and long term as the government develops additional engines of expansion. Those initiatives include three large-scale projects and a transition toward greener economic activity.

Lee also presented more balanced growth as a central policy challenge. He said sustainable expansion would require support for vulnerable groups in housing, employment and financial services, alongside efforts to narrow disparities among companies, generations, income groups and regions. The message acknowledged that headline gains from the semiconductor sector do not automatically spread evenly across the broader economy.

Representatives of the rating agencies showed particular interest in how the government intends to use stronger tax revenue generated by the chip boom. Lee briefed them on a Future Fund scheduled to launch next year. According to the finance ministry, the agencies said the semiconductor and artificial intelligence supercycle has helped Korea manage pressures including population aging and the war in the Middle East. They also viewed the country’s economic indicators and public finances as stable.

Beyond the rating-agency talks, Lee signed agreements aimed at expanding artificial intelligence cooperation with multilateral development banks. Discussions with the European Bank for Reconstruction and Development included possible cooperation on AI and nuclear energy, while talks with the Central American Bank for Economic Integration produced an agreement to establish an AI and digital transformation center.

Lee also held bilateral meetings with officials from the United States, Switzerland, Saudi Arabia and Poland. The agendas ranged from financial coordination and foreign-exchange policy to energy, defense, infrastructure and sovereign wealth funds.

The Bangkok trip was Lee’s first major international engagement since taking office last month. The finance ministry said he attended 25 sessions, including 19 bilateral meetings, as Korea sought to pair its near-term chip-driven expansion with broader investment and international economic cooperation.