BOK official: IT exports expected to add around 0.7 percentage points to GDP

BOK official: IT exports expected to add around 0.7 percentage points to GDP

South Korea’s IT Exports Projected to Boost GDP by 0.7 Percentage Points, BOK Official States

South Korea’s information technology (IT) exports are expected to contribute approximately 0.7 percentage points to gross domestic product (GDP) growth in 2026, according to a Bank of Korea (BOK) official, reflecting the sector’s growing role in driving economic expansion. This projection aligns with recent data showing robust performance in semiconductor and digital goods exports, which have offset broader economic headwinds.

In the third quarter of 2025, South Korea’s economy grew 1.3% quarter-on-quarter, the strongest pace since late 2021, driven by strong investment in construction and semiconductor manufacturing according to KED Global. IT-related investments, including intellectual property products and advanced manufacturing equipment, were revised upward to 1.2% and 2.6%, respectively according to KED Global. Exports, a key growth engine, rose 2.1% year-on-year in Q3, with semiconductors and automobiles accounting for a significant share of the increase as reported by JoongAng Daily.

The BOK has raised its 2025 growth forecast to 1% from 0.9% and anticipates 1.8% growth for 2026, partly due to sustained IT export momentum according to KED Global. However, challenges persist. In the fourth quarter of 2025, GDP contracted 0.3% quarter-on-quarter, with construction investment declining 3.9% and exports falling 2.1% due to global demand shifts and U.S. tariff pressures as CNBC reports. Despite these setbacks, IT exports remain a stabilizing force.

The BOK official emphasized that continued investment in AI, smart manufacturing, and cybersecurity—key components of IT spending—will underpin future growth according to JoongAng Daily. Meanwhile, a recent U.S.-South Korea trade agreement, which includes reduced tariffs on vehicles and auto parts, may bolster export resilience, though uncertainties around semiconductor tariffs linger as CNBC reports.

With IT exports projected to add 0.7 percentage points to GDP, policymakers are focusing on diversifying growth drivers beyond semiconductors to mitigate sector-specific risks according to JoongAng Daily. The BOK’s revised forecasts highlight a cautious optimism, balancing near-term challenges with long-term structural strengths in technology and innovation.