Korea's economy is projected to grow by 0.8% in 2025, unchanged from KDI's May forecast. Upward revisions to private consumption and export growth are offset by a sharper decline in construction investment. In 2026, growth is expected to rise to 1.6% as domestic demand gradually recovers, despite subdued exports.

• Private Consumption: Easing interest rates and stimulus measures are expected to temper weakness in the second half of 2025, lifting growth to 1.3% (Previous Outlook: 1.1%) from 1.1% in 2024, before rising further to 1.5% in 2026.
• Equipment Investment: Semiconductor market strength and lower borrowing costs should sustain moderate gains—1.8% in 2025 (Previous Outlook: 1.7%) and 1.6% in 2026, up from 1.7% in 2024. 

• Construction Investment: Lingering effects of past high interest rates will depress growth to -8.1% in 2025 (Previous Outlook: -4.2%) following a -3.3% contraction in 2024. However, a 2.6% rebound is anticipated in 2026 as orders recover.

• Exports: U.S. tariff hikes will slow growth to 2.1% in 2025 (Previous Outlook: 0.3%), down sharply from 6.8% in 2024, with a further 0.6% increase in 2026.
• Current Account Surplus: Strong semiconductor exports and improved terms of trade should produce substantial surpluses—USD 106 billion in 2025 (Previous Outlook: USD 92 billion) and USD 91 billion in 2026, following USD 99 billion in 2024.
• Employment: Job gains are projected to narrow from 160,000 in 2024 to 150,000 in 2025 and 110,000 in 2026, reflecting demographic changes and modest economic growth.
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South Korea’s cultural content industry, or K-Content, has grown rapidly over the past decade, driven by digital platforms and global demand. This study examines the sector’s structural changes, its significant economic impact, and the firm-level factors, such as intellectual property accumulation, that continue to power its expansion. 

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