Korea's economy is expected to grow 3.2 percent in 2026, a state-run think tank said Wednesday, revising up its previous forecast of 2.5 percent amid stronger-than-expected global demand driven by the artificial intelligence (AI) boom. The Korea Development Institute (KDI) said the revision came as global demand for semiconductor products remained stronger than expected, leading to increased exports and facility investment, which are expected to eventually boost private consumption in 2027. Accordingly, the KDI also projected economic growth of 2.2 percent for 2027, up 0.5 percentage point from its previous outlook. The think tank added that Korean export volumes are expected to grow 8.7 percent and 5 percent in 2026 and 2027, respectively, despite U.S. tariff measures and geopolitical uncertainties in the Middle East, as AI-related investment around the globe is expected to offset such hurdles. The KDI, meanwhile, assessed that Korea is currently enjoying a surge in exports and facility investment amid the AI boom. "Exports of computers, electronics and optical instruments continue to gr
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