South Korea's semiconductor exports jumped 209% YoY to a record USD 46.65 bln in August, accounting for 47.5% of the month's goods exports, driven by AI infrastructure demand. Moody's economist Dave Chia warned a rapid stop would pose problems: a gradual slowdown is manageable, but Korea's two-speed economy means sectors able to offset a chip slump are currently under pressure. Monetary policy may limit the cushion— the Bank of Korea raised rates for a second time in August—Chia said if chip dem

South Korea's semiconductor exports jumped 209% YoY to a record USD 46.65 bln in August, accounting for 47.5% of the month's goods exports, driven by AI infrastructure demand. Moody's economist Dave Chia warned a rapid stop would pose problems: a gradual slowdown is manageable, but Korea's two-speed economy means sectors able to offset a chip slump are currently under pressure. Monetary policy may limit the cushion— the Bank of Korea raised rates for a second time in August—Chia said if chip demand cools while policy tightens, domestic demand may not pick up the slack and the windfall will fade. Traditional exporters are weak: August auto exports fell 29.8% YoY. Chia also flagged US tariffs and production shifts to US plants as more durable headwinds.