South Korean Deputy Prime Minister and Minister of Economy and Finance Lee Hyoung-il expects the semiconductor industry boom to persist at least until 2027. He attributes this outlook to a significant supply-demand gap in the chip market and ongoing expansion on the supply side.
The statement follows a week of sharp declines for South Korean semiconductor stocks, including Samsung, SK Hynix, and Seoul Semiconductor. Investors have been reacting to concerns regarding Federal Reserve interest rate hikes and intensifying competition within the sector.
Lee Hyoung-il noted that the high concentration of the semiconductor industry in the national economy has amplified stock market volatility. Despite these market fluctuations, he emphasized that South Korea's overall economic fundamentals remain solid.
The semiconductor sector has also positively impacted the country's fiscal health. According to the minister, tax revenues for the current year are projected to exceed initial expectations.
