South Korean official warns that wealth from the chip industry could fuel a real estate bubble.

According to ME News, on June 22 (UTC+8), Kim Yong-beom, head of the Presidential Policy Office of South Korea, stated that policymakers must pay attention to how the wealth generated by the country’s chip-driven prosperity is transmitted to broader sectors of the economy. He warned that historical experience shows excess liquidity often flows into the real estate market. He noted that, fueled by the global AI boom, South Korea’s semiconductor industry has seen substantial profit growth, driving the nation’s nominal economic growth to its fastest pace in over two decades. Despite overall economic data showing unusually strong expansion, many ordinary households and small businesses have yet to truly benefit from this growth. The policy official emphasized that South Korea’s current economy exhibits clear structural divergence: on one hand, AI and chip industries are generating massive profits; on the other, residents and small enterprises in the real economy still feel limited gains. Therefore, the South Korean government must closely monitor capital flows to prevent new wealth and liquidity from excessively entering the real estate market, which could drive up housing prices and accumulate new financial risks. Click the link below to join Dongcha Beating · Feishu AI News Channel for 24/7 real-time monitoring of global AI trends and news. (Source: BlockBeats)