South Korean Finance Minister: Semiconductor Industry Boom to Continue Until 2027

South Korea's Deputy Prime Minister and Finance Minister Lee Hyoung-Il said on Saturday that the boom in the semiconductor industry is likely to persist until at least 2027. "Currently, we believe this growth can continue at least through next year," Lee stated, according to CNBC. He attributed this outlook to a substantial gap between semiconductor supply and demand, coupled with ongoing expansion in production.

The minister's remarks come as the semiconductor sector has experienced a significant downturn in stock markets. Investors have raised concerns over potential interest rate hikes by the U.S. Federal Reserve and intensifying competition within the industry. South Korean chip stocks, including major players like Samsung, SK Hynix, and Seoul Semiconductor, have faced considerable selling pressure.

Lee acknowledged that the volatility in semiconductor stocks has amplified fluctuations in South Korea's stock market this year. He explained this phenomenon by the significant weight of the semiconductor industry in the South Korean economy compared to other nations. However, he emphasized that the country's overall economic fundamentals remain "solid" despite increased turbulence in capital markets.

While the semiconductor industry contributes to market volatility, it has also significantly boosted tax revenues for South Korea. Lee Hyoung-Il indicated that the nation's tax revenues are projected to exceed earlier forecasts for the current year.