Global Market: South Korea targets AI-led growth, raises 2026 GDP forecast to five-year high; chip stocks in focus

South Korea raised its 2026 GDP growth forecast to 3.0%, sharply higher than the earlier estimate of 2.0% and the strongest since 2021, driven by surging semiconductor and AI-related exports. The government announced accelerated investments in semiconductor manufacturing, AI data centres and physical AI technologies, alongside a planned 2027 budget increase of at least 10% to over $532 billion. However, the 2026 inflation forecast was revised up to 2.6% from 2.1% due to higher oil prices, and growth is expected to moderate to 2.2% in 2027.