The monthly economic assessment released today, Monday, by the Korean Institute for International Economic Policy showed that South Korea's economy continues to record strong performance, supported by growing global demand for semiconductors and expanding investments in artificial intelligence infrastructure.
Yonhap News Agency quoted the institute as saying that semiconductor production and investment in this sector continue to grow at a strong pace thanks to external demand, pointing to a gradual improvement in sectors related to the development of AI infrastructure.
Exports lead growth
South Korea's exports in October last year reached a record level of $115.3 billion, an increase of 93.7 percent compared to the same period last year, driven by growing global demand for semiconductors and continued investments by major technology companies in data centers and AI technologies.
The effects of this growth extended to other industrial sectors, as exports of steel products, non-ferrous metals, and electronic devices used in building data centers rose, alongside increased investment in equipment and machinery, reflecting the expanding impact of the AI boom on the South Korean economy.
Strong sales of electric cars
As another indicator of industrial activity, sales of electric vehicles by Hyundai Motor and Kia in the domestic market rose in October to 12,267 cars, a 95.9 percent year-on-year increase. Cumulative sales of the two companies' electric models reached 116,159 cars during the first ten months of this year, up 77.1 percent compared to the same period last year.
In a related context, Yonhap News Agency reported that Samsung Electronics' cash assets reached approximately 214.8 trillion won, equivalent to $146.6 billion, by the end of the third quarter of this year, making it the first South Korean company to surpass the 200 trillion won cash asset threshold.
Potential external risks
Despite positive indicators, the Korean Institute for International Economic Policy warned that ongoing tensions in the Middle East and oil price volatility, along with growing uncertainty regarding economic policies in major economies, may pose challenges to the growth trajectory in the coming period.
Source: Syrian Arab News Agency (SANA)
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