‘Transitory euphoria’: South Korea’s strong economic outlook masks key hurdles

South Korea’s economy faces uncertainties from rising inflation, a weakening won and uneven performance across sectors, even as it grows stronger than expected this year, according to analysts.

The Bank of Korea on Thursday revised its economic growth outlook for this year to 2.6 per cent, up 0.6 percentage points from its forecast three months ago, citing robust exports driven by booming semiconductor demand and government supplementary spending aimed at offsetting the shocks from the Middle...