Moody's has revised up its economic growth forecast for South Korea to 3.5%, driven by a boost in semiconductor activity until at least mid-2027, Pulse News reported Tuesday.

The rating agency expects GDP growth of 2.7% for the country in 2027, the report said.

The forecast for this year is higher than the previous estimates of 2.5% in May and 1.8% in February, according to the report.

Moody's sees further boon in chip demand, pointing to government projects for semiconductors, AI data centers and physical AI as growth and productivity avenues, the report said.

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