South Korea's Economy Rebounds with Strong AI-Driven Export Growth

South Korea's central bank announced on Thursday that the global demand for artificial intelligence technology has significantly boosted the country's exports, leading to a robust economic rebound at the beginning of the year. According to Jin10, South Korea's GDP grew by 1.7% quarter-on-quarter in the first quarter, reversing the contraction seen in the fourth quarter of 2025 and marking the fastest growth since the third quarter of 2020. This figure surpassed the general expectation of 0.9% from institutional surveys and even exceeded the most optimistic forecasts. Data showed that chip exports surged by 139.1% year-on-year in the first quarter, more than doubling the growth rate from the previous quarter, with overall export growth reaching monthly highs not seen since 2021. Construction and equipment investments also increased by 2.8% and 4.8%, respectively. However, the outlook for South Korea's economy remains uncertain due to recent instability in growth momentum over the past few quarters. The ongoing war in Iran has cast a shadow over growth and price prospects, with consumer confidence in March dropping to its lowest level in ten months.