South Korea's memory chip boom distorts economy, risks sharp correction

South Korea's economy is increasingly dependent on a booming memory chip sector, which is masking weakness in other areas and creating vulnerability to a sharp downturn if chip demand falters. The concentration risk is growing as the sector's outsized contribution to GDP and exports distorts broader economic indicators. This matters because a correction in the chip cycle could trigger a significant economic contraction and financial market stress in a major Asian economy.

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