Bank of Korea flags AI chip boom as systemic financial stability risk

The central bank notes that semiconductor exports now account for over 40% of the country's total shipments in peak months. This concentration has led to a speculative frenzy, with leveraged ETFs tied to Korean tech stocks increasing more than 20-fold. The Bank of Korea compares the current vendor financing and liquidity flows to the dot-com era, raising concerns about a potential bubble.

Analysts warn that a slowdown in global AI infrastructure spending in 2027 or 2028 could trigger a systemic economic shock. The risk is compounded by rising competition from Chinese memory chip manufacturers and structural issues such as South Korea’s low fertility rate and high household debt. The central bank views this not just as a market rally, but as a critical vulnerability in the broader financial system.