ING Economist Predicts Slowdown in South Korea's Semiconductor-Driven Growth

Economist Min Joo Kang from ING has forecasted a potential slowdown in South Korea's semiconductor-driven economic growth starting in the second quarter. According to Jin10, while chip manufacturers have not yet faced significant raw material shortages due to the Middle East conflict, inventories of key inputs may be depleted in the coming quarters. Kang noted that if supply disruptions persist, negative impacts could become apparent in the latter half of 2026. She added that even if the conflict ends within weeks, these disruptions may still suppress manufacturing activity and increase cost pressures. ING has revised South Korea's GDP growth forecasts for the second and third quarters downward and adjusted the 2026 GDP growth expectation from 2.2% to 2.0%.