Seoul:Major global investment banks have upgraded their forecasts for South Korea's economic growth, driven by a robust semiconductor upcycle.

According to Yonhap News Agency, the Korea Center for International Finance (KCIF) reported that median growth predictions by key foreign institutions for 2026 were raised to 3.5 percent in September, up from 3.3 percent in August.

The revisions have been ongoing since April this year. At the end of last year, the average forecast was 2 percent, which increased to 2.1 percent in January, 2.4 percent in April, and 2.8 percent in May. These adjustments are based on expectations that the global semiconductor cycle will remain stronger and more resilient than previously anticipated.

Among the investment banks, JP Morgan anticipates a 4 percent growth for South Korea this year, an increase of 0.2 percentage points from the previous month. Citi raised its forecast to 3.8 percent from 3.7 percent, while UBS adjusted its prediction to 3.5 percent from 2.8 percent.

For the following year, foreign investment banks have also increased their growth forecasts to 2.8 percent, marking a rise of 0.3 percentage points from a month earlier.