South Korea Boosts Tech Investment to Counter Global Economic Risks
South Korea is ramping up investment in its technology sector as it seeks to shield the economy from rising global risks, including slowing growth, geopolitical tensions, and volatile trade conditions, according to government announcements and industry officials.
The government has outlined plans to increase funding and policy support for strategic industries such as semiconductors, artificial intelligence, batteries, and advanced manufacturing. These sectors are seen as critical to maintaining South Korea’s global competitiveness and sustaining growth as external demand becomes more uncertain.
Semiconductors remain at the centre of the strategy. As one of the world’s leading chip producers, South Korea is aiming to strengthen supply chains, boost research and development, and attract private investment to offset fluctuations in global demand. Officials say enhanced incentives, including tax benefits and infrastructure support, will help domestic firms navigate a challenging international environment.
The push comes as export growth has shown signs of slowing amid weaker demand from major markets and ongoing trade disruptions. Technology exports, which account for a significant share of South Korea’s economy, have faced pressure from cyclical downturns and intensifying global competition.
In addition to large conglomerates, authorities are focusing on startups and small technology firms. Expanded funding programmes and regulatory support are intended to encourage innovation and reduce reliance on a narrow range of industries. Analysts say this broader approach could help improve economic resilience over the medium term.
South Korea’s central bank has maintained a cautious policy stance, balancing inflation concerns with the need to support growth. While price pressures have eased compared with earlier peaks, policymakers remain alert to global financial volatility and its potential spillover effects on domestic markets.
Economists note that sustained investment in technology could provide a buffer against external shocks, but warn that outcomes will depend on global demand conditions and execution at home. Rising competition in areas such as chips and electric vehicle batteries also poses longer-term challenges.
As global uncertainty persists, South Korea’s strategy underscores a growing emphasis on innovation-led growth. Whether increased tech investment can fully counter external headwinds will be closely watched in the months ahead, as the country navigates a complex and shifting global economic landscape
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