Semiconductor market to remain solid ‘at least through next year,’ South Korea finance minister says

The semiconductor boom will last at least through 2027, South Korean finance minister Lee Hyoung-Il said on Saturday. "For now, our view is that we can sustain this growth at least through next year," Lee told CNBC on the sidelines of the IMF-World Bank annual meetings in Bangkok. "That's because the gap between demand and supply for semiconductors is still very wide, and supply is still being expanded." His comments come after semiconductor stocks fell sharply this week, hurt by investor concerns about interest rate hikes and rising competition from Chinese companies. South Korean chip stocks like SK Hynix and Seoul Semiconductor were part of the sell-off, along with U.S. giants like Nvidia. Chip stocks have fueled volatility in South Korea's stock market this year, Lee said. He attributed the market's wild swings to the semiconductor industry's larger share of the economy than in other countries. Despite the market swings, South Korea's economy is "solid," Lee said. On Thursday, an opinion column in Maeil Business Newspaper, a prominent South Korean publication, urged the country's government to prepare for the coming slowdown in the artificial intelligence boom. The author said two experts expect a "flood of new supply" of semiconductors that will turn the memory market "into a red ocean" by 2029, according to a CNBC translation. While South Korea's semiconductors may be driving volatility in its stock market, the industry has also fueled tax growth. Lee said the country expects to collect more taxes than initially projected this year. South Korea will ultimately be in a stronger fiscal position because of the chip boom, he added. WATCH: Don't overlook opportunity in South Korea, says Verdad Advisers' Rasmussen