South Korea in July 2026: the most important developments in economy
South Korea's economy in July 2026 turned on the artificial intelligence chip boom and the volatility around it. Samsung Electronics reported a record second-quarter operating profit of 89.5 trillion won, with operating profit up roughly 1,800% and net profit nearly 1,300% from a year earlier, and warned that the chip shortage could last through 2028. Its shares fell about 6.9% on July 7 on fears of memory chip oversupply. On July 22 Samsung launched its Galaxy Z Fold 8, Z Fold 8 Ultra and Z Flip 8 foldable phones and new smartwatches. On July 25 Samsung and SK Group announced AI chip deals with US firms worth up to $950 billion.
SK Hynix raised $26.5 billion in a US listing on July 10, the largest initial public offering by a foreign company in US history. Shares then fell 9% on Wall Street and 15% in Seoul on July 14. The KOSPI index stood 20% below its June record close on July 8, fell nearly 6% on July 24 and dropped sharply on July 28. On July 29 a selloff led by Samsung and SK Hynix followed a disappointing SK Hynix earnings report, and a record $2 trillion in market value was reported wiped out. Regulators announced curbs on leveraged exchange-traded funds.
On the macro side, exports grew at their fastest pace since 1978 in June, and the IMF raised its 2026 growth outlook to 2.6%. Inflation hit a 30-month high in June, and on July 16 the Bank of Korea raised its key rate for the first time in more than three years. The country began 24-hour won trading on July 6. On July 23 the United States announced forced labor tariffs of up to 12.5% on South Korea, Japan and 58 other economies, and Seoul said it would work with Washington to uphold a 15% tariff rate.
At Hyundai Motor, the union held strikes in July as wage talks stalled, and the company reported a 21% fall in second-quarter profit.
by WorldBrief & Maksim Micheliov | AI-generated summary
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