The Bank of Korea released a report on Monday stating that the surging demand for artificial intelligence infrastructure following the launch of ChatGPT has driven the share of South Korea's chip manufacturing industry in the nation's total manufacturing output to exceed 10% in 2024.

According to the report, the value of South Korea's semiconductor industry output in 2024 reached 210.8 trillion won (approximately $143.9 billion), accounting for 10.1% of the total manufacturing output.

This makes semiconductors the largest manufacturing sector in South Korea. The steel industry ranked second with an 8.7% share, followed by the oil refining industry at 8.5%.

In the previous industrial statistics from 2019, the semiconductor sector held an 8.7% share, placing it second behind the steel industry, which was at 9.7%.

Key Sector Metrics

From a value-added perspective, the chip industry contributed 16.7% of the manufacturing sector's value-added in 2024. The industry employs 5% of the manufacturing workforce, while the number of companies within it accounts for only 0.7% of all manufacturing firms.

The Bank of Korea stated that AI-related demand has reshaped the landscape of South Korea's semiconductor industry.

"Since the launch of ChatGPT in late 2022, global investment in data centers and AI computing infrastructure has surged dramatically, leading to a restructuring of the global semiconductor supply chain driven by artificial intelligence," the Bank of Korea said. "South Korean chip companies have aligned their production and investment strategies with this global trend."

The central bank added that the semiconductor industry is currently in a super-cycle, with major memory chip leaders Samsung Electronics and SK Hynix fully benefiting. It is projected that the related industry's share of output will increase significantly by 2026.

This information is for reference only and does not constitute investment advice.