South Korea's state-run think tank, the Korea Development Institute (KDI), said on Monday that the benefits of the country's economic recovery have not yet spread widely to the household sector, and the repair in household purchasing power remains limited.
In its monthly economic assessment report, the KDI said: "Constrained by weak base wage growth and persistent supply-side inflationary pressures such as elevated oil prices, the recovery in household purchasing power is being held back." The institute noted that although South Korea's current economic recovery is being driven by the artificial intelligence industry, the benefits have not yet reached households broadly.
However, the think tank also said that South Korea's economy as a whole is still maintaining its recovery momentum, with manufacturing output continuing to grow steadily. The report said: "Strong global demand for AI infrastructure investment is driving robust growth in exports and facility investment in AI-related areas."
In September, boosted by a sharp increase in chip exports, South Korea's exports surged 83.5% year on year, setting a record high of $120.9 billion. Semiconductor exports exceeded $60 billion last month for the first time, lifting the overall export figures. The institute added: "Exports of semiconductors and computer products continue to grow rapidly, and exports of products related to AI infrastructure, such as steel and nonferrous metals, have also performed steadily."
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