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SEOUL, Oct. 27 (Yonhap) -- The South Korean economy grew 1 percent in the third quarter from a quarter earlier driven by strong exports and investment, central bank data showed Tuesday.
The country's real gross domestic product (GDP) -- a key measure of economic growth -- rose 1 percent in the July-September period from three months earlier, according to advance data from the Bank of Korea (BOK).
The third-quarter reading marked an increase from the previous quarter's 0.6 percent expansion and exceeded the BOK's earlier forecast of 0.3 percent made in August.
From a year earlier, the South Korean economy expanded 3.4 percent in the third quarter, slowing slightly from 3.7 percent in the second quarter.
Asia's fourth-largest economy grew 1 percent in 2025 amid weak facility investment and a downturn in the construction sector.
Fueled by the artificial intelligence (AI) infrastructure boom and resulting global demand for semiconductors, the South Korean economy grew 1.8 percent in the first quarter of 2026, marking its strongest quarterly growth since the third quarter of 2020, when the economy expanded 2.2 percent.
This file photo taken July 31, 2026, shows boxes of semiconductors produced by Samsung Electronics Co. and SK hynix Inc. being loaded onto an aircraft at Incheon International Airport in Incheon, west of Seoul. (Pool photo) (Yonhap)
In detail, exports rose 2.3 percent from the previous quarter and imports increased 2.4 percent, while government spending advanced 1.9 percent.
Net exports contributed 0.1 percentage point to the quarterly GDP growth.
Facility investment increased 4.1 percent, and construction investment climbed 0.7 percent on a quarterly basis.
However, private consumption fell 0.2 percent.
Real gross domestic income (GDI), which reflects changes in terms of trade, rose 18.8 percent on-year in the third quarter, marking the highest spike since the fourth quarter of 1977, when it reached 19 percent.
With the faster-than-expected third-quarter growth, the BOK may likely raise its growth forecast of 3.3 percent made in August.
The central bank will release its new growth predictions next month.
Containers are stacked at a port in the southeastern coastal city of Busan, in this Oct. 1, 2026, file photo. (Yonhap)
brk@yna.co.kr
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Source: Yonhap News · Kim Boram
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