Bank of America raised its 2026 GDP growth forecast for South Korea to 3.1% from 1.9%.
The upgrade is driven by a powerful semiconductor upcycle pushing above-trend expansion.
The bank projects the current account surplus will improve to 15% of GDP this year.
The revised outlook reflects a sharp increase in DRAM price projections, expected to rise 48% year-over-year in 2026.
Year-to-date, South Korea's export growth has accelerated to 41%, with semiconductors contributing 36 percentage points.
BofA expects net exports to contribute 1.3 percentage points to GDP growth in both 2026 and 2027.
The semiconductor sector has emerged as the primary driver of economic acceleration.
The ongoing AI cycle is boosting global chip demand.
