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South Korea is experiencing an extraordinary semiconductor boom, fueled by the global artificial intelligence revolution. But could today’s record profits create tomorrow’s economic risks? In this episode of The Better Policy Project, Salome Mkervalidze, a Level One student at the Global Forecasting School, joins Douglas Laxton, former Head of the Economic Modeling Division at the IMF, to explore the opportunities and risks associated with South Korea’s semiconductor windfall. Drawing lessons from Chile’s experience with copper price booms, they discuss why governments must distinguish temporary economic gains from permanent increases in national wealth. **Key topics include:** - How the AI revolution is transforming South Korea’s semiconductor industry - What South Korea can learn from Chile’s copper boom - The risks of overinvestment, excessive subsidies, and Dutch disease - Why rising export prices do not necessarily mean sustainable economic growth - Structural challenges involving education, housing, youth employment, and population ageing - The Three Cs: Comprehensive, Consistent, and Coordinated policies - How scenario-based economic modeling can help policymakers prepare for uncertainty **The central message:** A semiconductor windfall is an opportunity, not a substitute for structural reform. The real challenge is designing policies that succeed whether semiconductor prices continue rising or eventually collapse. Explore our initiatives: 🌐 The Better Policy Project: https://thebetterpolicyproject.org 🌐 AI-Powered Learning: https://ai-powered-learning.org If you enjoyed this discussion, please like, subscribe, and share your thoughts in the comments. Can South Korea turn its semiconductor boom into lasting prosperity, or could the AI-driven surge create new economic vulnerabilities? #SouthKorea #Semiconductors #ArtificialIntelligence #EconomicGrowth #Macroeconomics #EconomicPolicy #AIRevolution #BetterPolicyProject #GlobalForecastingSchool #PrudentRiskManagement

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