Korea Development Institute said in its September Economic Trends report the economy is improving, led by AI-related investment. Exports and equipment investment—centered on semiconductors—are growing strongly; production in metal processing, electrical equipment and machinery linked to AI investment also rose. KDI warned Middle East geopolitical risk and uncertainty from US trade policy remain elevated, and improvements have not fully transmitted to household income, leaving consumption weak. R

Korea Development Institute said in its September Economic Trends report the economy is improving, led by AI-related investment. Exports and equipment investment—centered on semiconductors—are growing strongly; production in metal processing, electrical equipment and machinery linked to AI investment also rose. KDI warned Middle East geopolitical risk and uncertainty from US trade policy remain elevated, and improvements have not fully transmitted to household income, leaving consumption weak. Real wages rose just 0.3% in 1H, constraining purchasing power. Data: August exports +68.7% YoY; July equipment investment +24.9% YoY, supported by semiconductor production equipment; July industrial production +3.1% YoY (above Q2 average); retail sales -0.8% YoY; services production growth slowed to 3.5%.