Summary

• South Korea is being tugged in opposing directions: AI-driven growth is gaining traction, while oil shocks are stoking inflation and weighing on domestic activity.
• Growth should ease in the near term before regaining momentum later in the year.
• But widening imbalances and energy pressures are set to complicate policymaking.

By Min Joo Kang

Exports should serve as a primary growth engine in 2026 and beyond

So far, the Middle East conflict has had a limited negative impact on South Korea's exports, as the AI boom overshadows

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