AI · SEMICONDUCTOR · FACT CHECK
SKD WIREMostly True
South Korea's manufacturing sector is showing a broad slowdown in business sentiment, with the semiconductor industry standing out as the main exception — continuing a strong run driven by demand for AI-related chips — while the steel industry is mired in weakness but watching for a turnaround.
Across most manufacturing sectors, expectations for business conditions have dimmed, reflecting soft domestic and external demand. The semiconductor industry, however, has diverged sharply from this trend. Buoyed by the global AI boom and robust orders for advanced chips, semiconductor makers' outlook has remained far stronger than the broader manufacturing average, effectively carrying the sector on its own — a pattern described in Korean industry circles as a "solo run" (독주).
The strength of the chip cycle underscores how concentrated Korea's current industrial momentum has become, with other heavy industries yet to recover in step.
The steel industry presents a different picture. Prolonged sluggishness in construction and a cautious manufacturing environment have weighed on demand and kept sentiment subdued. Still, industry expectations point to a potential rebound, with steelmakers anticipating an improvement in business conditions as downstream demand recovers.
Whether that hoped-for recovery materializes remains uncertain, and the timing is not firmly established in available assessments.
The overall picture — a slowing manufacturing outlook with semiconductors running well ahead of the pack and steel hoping for a rebound — is largely supported by the available data, though the pace of any steel recovery remains open. Verdict: Mostly True.
