South Korea lifts 2026 growth forecast as H2 policy plan targets inflation and AI infrastructure

Seoul's revised economic roadmap signals a pivot toward stabilizing prices while capitalizing on the AI supply chain boom, aligning with ING's upgraded 4% GDP outlook.

By Handelsavisen Newsroom · Automated 2026-07-16 14:29 UTC · 1 min read

The South Korean government has unveiled its key economic policy measures for the second half of 2026, centering on a revised upward growth outlook and a dual focus on curbing inflation and expanding artificial intelligence infrastructure.

The policy package arrives as Prime Minister Han Seong-sook has declared that controlling consumer price increases is the administration's top priority.

ING recently raised its 2026 GDP growth forecast for South Korea to 4%, up from a previous estimate of 3%, citing the nation's critical role in semiconductor and data center development.

This stance follows recent data indicating that inflation accelerated to its fastest pace in 30 months last month, raising concerns about household purchasing power and monetary policy headwinds.

Simultaneously, the government is leveraging the country's strategic position in the global AI supply chain to drive expansion.

This structural tailwind has prompted international analysts to reassess the economy's trajectory.

ING recently raised its 2026 GDP growth forecast for South Korea to 4%, up from a previous estimate of 3%, citing the nation's critical role in semiconductor and data center development.