Lee Hyungil: "Semiconductor Boom to Last at Least Through Next Year"

Interview with U.S. business news network CNBC
Stresses "solid" fundamentals despite recent sharp drop in stock prices

Lee Hyungil, Deputy Prime Minister and Minister of Finance and Economy, said he expects the global semiconductor market boom to continue at least through 2027. His assessment is that structural demand in the market continues to far outstrip supply, despite the recent sharp decline in semiconductor stocks triggered by concerns over global interest rate hikes and China's aggressive catch-up.

Lee Hyeong-il, Deputy Prime Minister and Minister of Finance and Economy, is on his way to attend the G20 Finance Ministers and Central Bank Governors Meeting in Bangkok, Thailand, on the 15th (local time). Ministry of Finance and Economy. Yonhap News Agency.

Lee made the forecast in an interview with U.S. business news network CNBC on Oct. 17 (local time), while attending the annual meetings of the International Monetary Fund (IMF) and the World Bank (WB) in Bangkok, Thailand. "The gap between semiconductor supply and demand remains very wide," he said. "The industry should be able to sustain its growth at least through next year."

Recently, semiconductor stocks fell across the board on the domestic stock market amid concerns over interest rate hikes and intensifying competition with Chinese companies. Lee said, "The semiconductor industry accounts for an overwhelmingly larger share of South Korea's economy than it does in other countries, so the market was highly volatile. Even so, the South Korean economy is resilient." He also forecast that the semiconductor boom would generate tax revenues this year far exceeding the initial projections. In effect, the semiconductor industry's positive spillover is creating a virtuous cycle that further strengthens the country's fiscal foundation.

This content was produced with the assistance of AI translation services.