Moody's Analytics said in a report South Korea's Q2 growth may slow from 1.8% in Q1 to 0.9%. An AI-driven semiconductor boom should leave exports—particularly semiconductor shipments—as the primary growth driver, while domestic demand is expected to remain weak and consumption to improve only marginally. High energy costs are adding to inflationary pressure and government measures will only partially mitigate it. South Korea's preliminary Q2 GDP estimate is due Thursday.