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Macro

BOK Gov. Shin: Next Year’s Budget Spending to Lift GDP Growth by 0.5 Points

Bank of Korea Governor Shin Hyun-song said next year’s government budget spending will raise the country’s GDP growth rate by 0.5 percentage points. He also said chip prices, rather than chipmaker share prices, deserve closer attention, and that chip prices show no sign of declining and may rise further.

Original source

AI take

The governor is effectively flagging fiscal policy as a near-term growth cushion, which matters for rate expectations: a budget adding half a point to GDP reduces the pressure for monetary easing to carry the load alone. His steer on chip prices over chipmaker equity is the sharper signal, tying Korea's outlook to the semiconductor cycle's pricing power rather than market sentiment. Whether chip prices keep climbing — and whether fiscal support proves temporary — is the open question for the won and Korean assets.

Generated by AI for reference only.

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