STOCKS | KDI Says AI Investment Is Lifting South Korea's Exports and Investment

South Korea's economy continued to improve, supported by strong exports and investment tied to artificial intelligence infrastructure at home and abroad. According to Sina Finance, the Korea Development Institute said in its monthly economic assessment that industries closely linked to AI investment are driving the recovery, even as uncertainty in the Middle East persists. The institute said manufacturing output in related industries continued to expand as AI infrastructure investment widened, while exports and equipment investment maintained rapid growth. Industrial output rose 3.1% month on month in July, easing from June's 4.4% increase but still above the second-quarter average of 2.9%. Chip price gains pushed semiconductor exports up more than 200%, helping South Korea's exports jump 68.7% year on year in August. Equipment investment also remained strong, rising 24.9% year on year in July on increased spending on semiconductor-related plants and equipment. The institute said the broader improvement has not yet fully reached household income, and private consumption remains weak. It said purchasing power has improved only limitedly, with consumption posting only a modest rebound.