Chip boom masks Korea's growing zombie firm problem

Korea's economy is experiencing a significant boom in the semiconductor industry, with nominal GDP growing at its fastest pace in 47 years. However, this growth is not being shared evenly across the economy, as the number of "zombie" companies, which are struggling or insolvent, has reached a record high. The Bank of Korea has highlighted this issue, suggesting that the benefits of the chip boom are not trickling down to all sectors. This could have implications for the overall stability of the economy.

Why it matters

Korea's semiconductor boom is not benefiting all sectors of the economy. This uneven growth could lead to economic instability and affect investor sentiment.

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