Kim Yong-beom Flags Real GDP Gap as Chip Boom Fuels Fiscal Debate

Presidential policy chief Kim Yong-beom wrote on Facebook on May 8 that existing macro indicators and policy systems are failing to keep pace with market changes driven by the semiconductor boom. He said Korea’s advance real GDP growth for the first quarter was 1.7%, nearly twice the Bank of Korea’s 0.9% forecast, while the trade balance, chip exports and corporate earnings were also moving near record levels. Kim argued that in industries such as semiconductors, where quality improvements outpace price changes, a gap can emerge between nominal profits and real GDP. He said markets already respond to export data and operating profits, while policy waits for confirmed statistics and reacts late. If the chip boom continues, he added, tax revenue in 2026 and 2027 could reach historic levels, requiring more flexible fiscal responses. Source: hankyung.com.