Half of economists forecast 1% growth range for Korea

More than half of economic experts expect South Korea's economic growth to remain in the 1 percent range this year, according to a local survey. The poll, conducted by Southernpost Inc. for the Korea Enterprises Federation (KEF), showed 54 percent of 100 economics professors holding this view. The average forecast stands at 1.8 percent, below the government's 2 percent outlook and the IMF's 1.9 percent projection.

A survey revealed that South Korea's economy is likely to grow in the low single digits this year. In a poll commissioned by the Korea Enterprises Federation (KEF) and conducted by Southernpost Inc., 54 percent of 100 economics professors predicted growth in the 1 percent range for 2026. Another 36 percent foresaw a shift to 2 percent starting in 2027, fueled by recovering consumption and demand, while 6 percent anticipated below 1 percent.

The economy expanded by 1 percent last year, down from 2 percent the year before. The average forecast of 1.8 percent falls short of the government's 2 percent target and the International Monetary Fund's (IMF) 1.9 percent estimate. Respondents projected the won-dollar exchange rate to fluctuate between 1,403 won and 1,516 won this year.

Nearly 60 percent of economists said the outcome of U.S.-South Korea tariff negotiations would negatively affect exports to the United States and domestic corporate investment. On the expanding use of artificial intelligence (AI) in workplaces, 92 percent viewed it as a solution to labor shortages and a boost to productivity, especially in manufacturing.

Almost 90 percent urged the government to implement strong measures against the overseas leakage of semiconductors and other core technologies, including severe penalties for violations. The survey results were released on January 25, 2026.

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