Dutch International: Growth led by South Korean chips may slow down starting from the second quarter.

Min Joo Kang of the Netherlands International Group stated that the growth led by semiconductors in South Korea may begin to slow down from the second quarter. The economist wrote that while chip manufacturers have not yet faced severe raw material shortages due to the Middle East conflict, the inventory of key inputs may deplete in the coming quarters. Kang said, "If the supply disruption continues, adverse effects may become apparent in the second half of 2026." She added that even if the conflict ends in a few weeks, supply disruptions may still restrain manufacturing activity and increase cost pressures. The Netherlands International Group has lowered its forecasts for domestic production growth in South Korea for the second and third quarters, lowering its GDP growth forecast for 2026 from 2.2% to 2.0%.