Goldman Sachs says AI spending boom could lift South Korea exports above $1 trillion

The bank said stronger-than-expected AI-driven chip demand may keep South Korea’s surplus elevated through year-end, with the current account surplus projected to reach 15% of GDP.

Summary

Goldman Sachs said the AI capital spending boom is boosting South Korea’s chip cycle more strongly and for longer than previously expected. The bank expects the large surplus generated by AI demand to persist through the end of the year, helping lift the country’s full-year exports above $1 trillion. It also projects South Korea’s current account surplus to rise to 15% of GDP, underscoring how demand tied to AI infrastructure and semiconductors is reshaping the country’s external trade balance.

Terms & Concepts
  • current account surplus: A country’s excess of exports and income over imports and payments.
  • chip cycle: The recurring rise and fall in semiconductor demand, pricing, and investment.
  • AI capital spending: Corporate investment in AI infrastructure such as chips, data centers, and related equipment.