South Korea’s economy posted 21.9% nominal GDP growth in the first half of 2026, with nearly 70% of that expansion driven by semiconductors. Samsung and SK Hynix together account for roughly half of the KOSPI benchmark index’s market capitalization, while real GDP growth forecasts have been revised upward to 3.3%-3.5%. The Bank of Korea now views AI chip trading as a financial stability issue rather than a simple equity rally driven by strong fundamentals. A slowdown in AI infrastructure spending expected from 2027-2028 could hit the Korean economy systemically, especially as Chinese competition in memory chips intensifies. Nvidia and AMD share prices track Korean chip output directly, meaning any disruption in supply would have immediate global market repercussions.
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