Korea's growth momentum broadening beyond cyclical rebound, finance vice minister says

South Korea's economy is strengthening its medium- and long-term growth engines as the artificial intelligence and semiconductor boom spreads into exports and investment, the finance ministry's second vice minister said Thursday, moving the country beyond a short-term cyclical rebound.

"Korea's economy is strengthening its medium- and long-term growth drivers as the effects of the AI and semiconductor boom spread to exports and investment, going beyond a short-term economic rebound," Huh Jang, second vice minister of economy and finance, said at the 2026 Korea KFS Forum held at the Seoul Shilla Hotel.

Huh said finance has a role in sustaining growth in the AI era. "To sustain growth in the AI era, it is important for finance to support long-term investment in future industries and to verify the soundness of investments, steering capital toward more productive sectors," he said.

The forum was hosted by the Korea Finance Society, a group of Korean finance professionals in New York, to connect Wall Street financiers with domestic investors to explore mutual investment opportunities and expand cooperation.

Huh also pointed to the government's efforts to open the won to overseas institutions. He said the government established a registration system last month for RFI-K, a category of overseas institutions authorized to deal in the won, and plans to formally launch an international won settlement network in January so foreign investors can settle won payments during their local business hours.

Huh said the combination of Korea's advanced manufacturing capacity with U.S. AI platform and software capabilities is widening joint growth opportunities for the two countries, and asked the KFS to work to connect investment opportunities and technology and capital between them.

"We will continue to improve Korea's investment environment in ways overseas investors can feel," he said.