Bloomberg on May 11 said Goldman Sachs economists predict Korea's current account surplus this year will exceed 10% of the country's gross domestic product thanks to an "AI (artificial intelligence)-driven super surplus" to surging technology exports driven by rising AI demand. (Screen capture of Bloomberg report)

By Hong Angie

The country's current account surplus this year will break a record high thanks to a surge in semiconductor exports stemming from the boom in artificial intelligence (AI).

A Bloomberg report dated May 11 said Goldman Sachs economists project Korea's surplus this year to surpass 10% of gross domestic product (GDP), adding that surging technology exports fueled by rising demand for AI are creating an "AI-driven super surplus."

The surge of such exports centered on semiconductors is the key factor behind the trend, Bloomberg added. Goldman Sachs predicted that Korea's AI-related exports will approach 30% of GDP this year, nearly three times the figure of under 10% over the last 10 years.

"This AI boom is the strongest tech cycle on record for Korea and Taiwan," the New York-based investment bank was quoted as saying. "Even under our various adverse oil-price scenarios, the impact on chip-energy balances should be immaterial since the scale and growth of chip exports completely dominate the energy price path."

"The trend will likely persist, despite both economies' reliance on energy imports from the Middle East."

The economists also said the Bank of Korea will raise interest rates 25 basis points in both the third and fourth quarters, based on the belief of economic recovery led by robust exports and upward pressure on the Korean currency to appreciate.

shong9412@korea.kr