Citigroup says that despite a temporary slowdown in industrial production in
August—partly from labor strikes and summer holidays that briefly halted auto
output—South Korea’s growth should exceed prior projections. Citigroup raised
its 2026 GDP forecast by 0.1 percentage point to 3.8% and its 2027 forecast by
0.2 percentage point to 3.3%, citing an auto-sector rebound in September and
broad manufacturing strength driven by a semiconductor upcycle. Citigroup
expects chip-led expansion to underpin South Korea’s economy through 2028.
