South Korea’s GDP grows 1% in Q3 on strong exports and investment

The growth in July-September accelerated from 0.6 percent in the previous quarter and surpassed the central bank’s August forecast of 0.3 percent. On a year-on-year basis, the economy expanded 3.4 percent.

South Korea’s export performance was driven by booming global demand for semiconductors amid the expansion of artificial intelligence infrastructure. Exports reached a record $120.9 billion in September, up 83.5 percent from a year earlier, with semiconductor shipments exceeding $60 billion.

Facility investment rose 4.1 percent from the previous quarter, while construction investment increased 0.7 percent. Government spending also advanced 1.9 percent. However, private consumption declined 0.2 percent amid stock market weakness and sluggish automobile sales affected by strikes at major automakers.

The BOK said South Korea’s economy grew a cumulative 3.6 percent during the first three quarters of 2026.

“If the economy maintains the on-quarter growth pace in the fourth quarter, GDP will likely grow 3.6 percent for the full year,” said Lee Dong-won of the BOK’s statistics department.

The central bank may revise its August full-year growth forecast of 3.3 percent upward, with updated projections scheduled for release next month.

Earlier, Qazinform reported South Korea held rates steady after consecutive increases to curb inflation.