The Korea Development Institute (KDI) said in its monthly economic assessment on
Monday that South Korea’s recovery has not broadly reached households and
household purchasing power remains limited. KDI cited sluggish base wage growth
and persistent supply-side inflation pressures, including elevated oil prices,
as constraining the recovery in household incomes. It said manufacturing output
remains robust and the recovery is being sustained by strong global AI
infrastructure investment, with AI-related sectors driving exports and equipment
investment; semiconductor and computer exports are rising rapidly and exports of
steel and nonferrous metals tied to AI infrastructure remain steady.
