During the IMF-World Bank annual meetings, South Korean finance minister Lee Hyoung-Il emphasized that the semiconductor industry's growth is expected to persist due to a substantial gap between demand and supply.
This outlook comes amid a recent decline in semiconductor stocks, including major players like SK Hynix and Nvidia, which have faced pressure from concerns over interest rate hikes and increasing competition from Chinese firms. Lee noted that the semiconductor sector's volatility has significantly impacted South Korea's stock market, which is more sensitive to this industry compared to others.
Despite these fluctuations, he reassured that the overall economy remains robust and that the semiconductor boom is contributing positively to tax revenues, leading to a stronger fiscal position for the country. Additionally, there are warnings from industry experts about a potential oversupply in the memory market by 2029, which could create challenges in the future