Seoul:The benefits from South Korea's economic recovery have not yet been widely felt by households, as indicated by a report from a state-run think tank.
According to Yonhap News Agency, the Korea Development Institute (KDI) stated in its monthly economic assessment that the recovery in household purchasing power is still limited. This constraint is due to subdued wage growth and elevated inflationary pressures, especially from high oil prices.
Despite the recovery being led by the artificial intelligence (AI) industry, the KDI noted that its benefits have not reached households broadly. However, they mentioned that the South Korean economy is maintaining its recovery momentum, with continued growth in manufacturing output.
The KDI highlighted that exports and equipment investment are experiencing strong growth, driven by AI-related sectors due to robust global demand for AI infrastructure investment.
In September, South Korea's exports increased by 83.5 percent from the previous year, reaching a record $120.9 billion. This surge was primarily fueled by a significant increase in chip shipments, with semiconductor exports exceeding $60 billion for the first time ever.
The report also mentioned that exports of semiconductor and computer products continue to grow rapidly, alongside other AI infrastructure-linked products such as steel and nonferrous metals.