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South Korea Q4 GDP Unexpectedly Contracts
South Korea’s economy contracted by 0.3% QoQ in the three months to December 2025, reversing a 1.3% expansion in Q3 and missing expectations for a 0.1% increase. It marked the sharpest quarterly contraction in three years, driven by weakening domestic demand and a 1% decline in non semiconductor exports. Private consumption rose 0.3%, supported by higher spending on services such as healthcare, though goods consumption fell, led by motor vehicles. Government consumption increased 0.6%, mainly reflecting higher healthcare benefit outlays. Construction investment dropped 3.9%, with both building construction and civil engineering weakening, while facilities investment fell 1.8% due to lower spending on transportation equipment. Exports declined 2.1%, dragged down by motor vehicles and machinery and equipment, while imports fell 1.7% amid lower purchases of natural gas and motor vehicles. On a year on year basis, the economy expanded 1.5% in Q4, undershooting forecasts of 1.8%.
Published on 2026-01-21

South Korea Q3 GDP Growth Revised Slightly Higher
South Korea’s economy grew 1.3% QoQ in the three months to September 2025, a touch above the earlier estimate of 1.2% and the strongest pace in nearly four years, supported by firm exports and resilient private consumption. Household spending rose 1.3% as outlays increased for both goods such as motor vehicles and communication equipment and services such as restaurants and health services. Government consumption also climbed 1.3%, driven by higher spending on goods and health care benefits. Construction investment increased 0.6%, led by gains in civil engineering, while facilities investment expanded 2.6% on stronger machinery purchases including semiconductor manufacturing equipment. Exports grew 2.1% on solid semiconductor and motor vehicle shipments, and imports rose 2.0% on higher inflows of machinery, equipment and vehicles. On an annual basis, the economy expanded 1.8% in Q3, slightly above the initial estimate of 1.7%.
Published on 2025-12-03

South Korea Economy Expands 1.2% in Q3
South Korea’s economy grew 1.2% quarter-on-quarter in the three months to September 2025, marking the fastest pace in 1-½-years on strong exports and solid private consumption. Household spending rose 1.3%, supported by higher outlays on goods such as motor vehicles and communication equipment, as well as services including dining and healthcare. Government consumption climbed 1.2%, driven by increased spending on goods and healthcare benefits. Construction investment slipped 0.1% due to weaker building activity, while facilities investment advanced 2.4% on robust demand for semiconductor equipment. Exports gained 1.5%, led by semiconductors and motor vehicles, and imports grew 1.3% on higher inflows of machinery, equipment, and vehicles. On an annual basis, South Korea’s economy expanded 1.7% in Q3, accelerating from a 0.6% growth in Q2.
Published on 2025-10-27

South Korea Q2 GDP Growth Revised Higher
South Korea’s economy grew 0.7% quarter-on-quarter in the three months to June 2025, 0.1 percentage point higher than the figure given in the advance estimate. That indicates a sharp reversal from a 0.2% contraction in the first quarter. Private consumption rose 0.5%, supported by higher spending on goods like motor vehicles and services such as health services. Government consumption increased 1.2% on the back of expanded health care benefits. However, construction investment declined 1.2%, with both building and civil engineering activity falling, while facilities investment also dropped 2.1% amid reduced purchases of machinery and transport equipment. Exports rose 4.5%, driven by semiconductors, petroleum products, and chemicals, while imports climbed 4.2%, mainly due to stronger demand for energy items like crude oil and natural gas.
Published on 2025-09-02

South Korea GDP Growth Beats Expectations in Q2
South Korea’s economy grew 0.6% quarter-on-quarter in Q2 2025, rebounding from a 0.2% contraction in Q1 and surpassing market forecasts of 0.5%, according to advanced estimates. Private consumption rose 0.5%, supported by higher spending on goods like motor vehicles and services such as recreation and culture. Government consumption increased 1.2% on the back of expanded health care benefits. However, construction investment declined 1.5%, with both building and civil engineering activity falling, while facilities investment also dropped 1.5% amid reduced purchases of machinery and transport equipment. Exports rose 4.2%, driven by semiconductors, petroleum products, and chemicals, while imports climbed 3.8%, mainly due to stronger demand for energy items like crude oil and natural gas.
Published on 2025-07-23

South Korea’s Economy Contracts in Q1
South Korea’s economy contracted by 0.2% quarter-on-quarter in the first three months of 2025, ending two straight quarters of expansion, final data showed. On the expenditure front, private consumption dipped by 0.1%, as expenditures on goods, notably communication equipment, increased while expenditures on services, particularly in recreation, sport & culture, decreased. Government consumption remained at the same level from the previous quarter, as expenditures on health care benefits decreased while expenditures on goods increased. Construction investment fell by 3.1%, led by a decrease in building construction. Meanwhile, facilities investment dropped by 0.4%, primarily due to a decrease in machinery, including semiconductor manufacturing equipment. Exports fell by 0.6%, as exports of chemical products and machinery & equipment declined. Imports also dropped by 1.1%, as imports of energy items like crude oil and natural gas decreased.
Published on 2025-06-04

South Korea’s Economy Unexpectedly Contracts in Q1
South Korea’s economy contracted by 0.2% quarter-on-quarter in the first three months of 2025, defying expectations of a modest 0.1% expansion. The downturn comes amid heightened political uncertainty at home and the economic impact of sweeping U.S. tariffs. On the expenditure front, private consumption dipped by 0.1%, primarily driven by reduced spending on services such as entertainment, cultural activities, and healthcare. Government consumption also declined by 0.1%, reflecting lower expenditures on healthcare benefits. Construction investment plunged 3.2%, largely due to a slowdown in building activity. Meanwhile, facilities investment dropped by 2.1%, with a notable decline in purchases of machinery, including semiconductor manufacturing equipment. Exports fell by 1.1%, weighed down by decreased shipments of chemicals and machinery. Imports also dropped by 2.0%, reflecting lower demand for energy products such as crude oil and natural gas.
Published on 2025-04-23

South Korea's Q4 GDP Growth Confirmed at 0.1%
South Korea's economy grew by 0.1% quarter-on-quarter in the fourth quarter of 2024, maintaining the same pace as the previous quarter, consistent with the figure given in the advance estimate. On the demand side, private consumption rose by 0.2%, as expenditures on services increased while expenditures on goods decreased. Government consumption grew by 0.7%, with increased expenditures on health care benefits. In terms of investment, construction investment fell by 4.5%, as building construction and civil engineering both decreased. However, facilities investment was up by 1.2%, driven by increased investment in machinery despite decreased investment in transportation equipment. Lastly, exports expanded by 0.8%, mainly due to IT-items such as semiconductors, while imports increased by 0.1%, owing to increased imports of machinery & equipment.
Published on 2025-03-04

South Korea's Q4 GDP Growth Falls Short of Expectations
South Korea's economy grew by 0.1% quarter-on-quarter in the fourth quarter of 2024, maintaining the same pace as the previous quarter but falling short of market expectations for a slight acceleration to 0.2%, according to preliminary data. On the demand side, private consumption rose by 0.2%, driven by higher spending on semi-durable goods (e.g., clothing and footwear) and services (e.g., healthcare and education). Government consumption increased by 0.5%, primarily due to higher social security benefits, including healthcare expenditures. In terms of investment, construction investment declined by 3.2%, with decreases in both building construction and civil engineering. However, facilities investment grew by 1.6%, largely due to a rise in spending on machinery, such as semiconductor manufacturing equipment. Exports increased by 0.3%, boosted by higher shipments of IT products like semiconductors, while imports fell by 0.1%, driven by lower demand for motor vehicles and crude oil.
Published on 2025-01-22

South Korea Q3 GDP Growth Confirmed at 0.1%
South Korea's economy grew 0.1% quarter-on-quarter in the third quarter of 2024, rebounding from a 0.2% contraction and consistent with the figure given in the advance estimate. The slight growth was driven mainly by modest increases in government and private consumption. On the expenditure side, private consumption grew by 0.5%, as expenditures on goods (e.g. electricity, gas & other fuels, and motor vehicles) and services (e.g. health services and transport services) both increased. Government consumption also rose by 0.6%, with increased social security benefits in kind (e.g. expenditures on health care benefits). Meanwhile, construction investment shrank by 3.6%, while facilities investment increased by 6.5%. Elsewhere, exports fell by 0.2%, as exports of motor vehicles and chemical products decreased, while imports were up by 1.6% as imports of machinery & equipment increased.
Published on 2024-12-04

South Korea Economy Grows Less Than Expected in Q3
South Korea's economy grew 0.1% quarter-on-quarter in the third quarter of 2024, rebounding from a 0.2% contraction in the previous quarter but coming in way below forecasts for a 0.5% expansion, preliminary data showed. The slight growth was driven mainly by modest increases in government and private consumption. On the expenditure side, private consumption grew by 0.5%, as expenditures on goods (e.g. motor vehicles, communication equipment) and services (e.g. health services, transport services) increased. Government consumption also rose by 0.6%, with increased social security benefits in kind (e.g. expenditures on health care benefits). Meanwhile, construction investment shrank by 2.8%, while facilities investment increased by 6.9%. Elsewhere, exports fell by 0.4%, as exports of motor vehicles and chemical products decreased, while imports were up by 1.5% as imports of machinery & equipment increased.
Published on 2024-10-23

South Korea Economy Contracts 0.2% QoQ
South Korea's economy shrank by 0.2% quarter-on-quarter in the second quarter of 2024, following a 1.3% growth in the previous quarter, final data showed. This marked the first contraction since the fourth quarter of 2022 when the economy shrank by 0.5%. On the expenditure side, private consumption fell by 0.2%, as expenditures on goods (e.g., motor vehicles, clothing) declined. Government consumption increased by 0.6%, mainly due to a rise in expenditures on goods. Construction investment contracted by 1.7% as residential building construction and civil engineering both fell. Facilities investment declined by 1.2%, driven by lower investments in machinery like semiconductor manufacturing equipment. Exports increased by 1.2%, owing to expanded exports of motor vehicles and chemical products. Imports were up by 1.6%, mainly due to increased imports of crude oil and petroleum products.
Published on 2024-09-04

South Korea Economy Unexpectedly Contracts in Q2
South Korea's economy shrank by 0.2% quarter-on-quarter in the second quarter of 2024, following a 1.3% growth in the previous quarter, according to advanced estimates. This marked the first contraction since the fourth quarter of 2022 and missed estimates of a 0.1% rise. On the expenditure side, private consumption fell by 0.2% (vs +0.7% in Q1), as expenditures on goods declined, although expenditures on services increased. Government consumption increased by 0.7% (vs +0.8%), mainly due to a rise in expenditures on goods. Construction investment contracted by 1.1% (vs +3.3%) as residential building construction and civil engineering both fell. Facilities investment declined by 2.1% (vs -2%), driven by lower investments in machinery, despite increased investments in transportation equipment. Exports increased by 0.9%, owing to expanded exports of motor vehicles and chemical products. Imports were up by 1.2%, mainly due to increased imports of crude oil and petroleum products.
Published on 2024-07-24

South Korea GDP Expands the Most Since 2021
South Korea's economy expanded by 1.3% quarter-on-quarter in the three months to March 2024, up from 0.5% growth in the previous quarter, consistent with the figure given in the advance estimate. It is the largest expansion since December 2021, surpassing expectations of a 0.6% increase. On the expenditure side, private consumption rose by 0.8%, driven by increased expenditures on goods and services. Government consumption also grew, increasing by 0.8%, mainly due to higher spending on goods. Construction investment expanded significantly, growing by 3.3%, with both building construction and civil engineering seeing increases. However, facilities investment declined by 2%, primarily due to lower investment in transportation equipment. Exports rose by 1.8%, driven by higher exports of IT items, such as cellular phones. Imports contracted by 0.4%, mainly due to decreased imports of electronic equipment.
Published on 2024-06-04

South Korea GDP Expands the Most Since 2021
South Korea's economy expanded by 1.3% quarter-on-quarter in March 2024, up from 0.6% growth in the previous quarter, according to advance estimates. It is the largest expansion since December 2021, surpassing expectations of a 0.6% increase. On the expenditure side, private consumption rose by 0.8% (vs +0.2% in Q4), driven by increased expenditures on goods and services. Government consumption also grew, increasing by 0.7% (vs +0.5% in Q4), mainly due to higher spending on goods.Construction investment expanded significantly, growing by 2.7% (vs -4.5% in Q4), with both building construction and civil engineering seeing increases. However, facilities investment declined by 0.8% (vs +3.3% in Q4), primarily due to lower investment in transportation equipment. Exports rose by 0.9% (vs +3.5% in Q4), driven by higher exports of IT items, such as cellular phones. Imports contracted by 0.7% (vs +1.4% in Q4), mainly due to decreased imports of electronic equipment.
Published on 2024-04-24

South Korea GDP Growth Steady in Q4
South Korea’s economy expanded by 0.6% QoQ in the three months to December of 2023, the same pace as both third and second quarter, according to final estimates. On the expenditure side, private consumption rose by 0.2% (vs +0.3% in Q3), as final consumption expenditure of resident households abroad increased, while expenditures on goods decreased. Government consumption grew 0.5% (vs +0.2% in Q3), attributed to increased expenditures on goods. Construction investment contracted by 4.5% (vs to +2.1% in Q3), with declines in both building construction and civil engineering. Facilities investment rose 3.3% (vs to +0.2% in Q3), driven by an increase in transportation equipment. Exports expanded by 3.5% (vs to +3.4% in Q3), driven by higher exports of semiconductors. Imports increased by 1.4% (vs to +2.3% in Q3), primarily due to higher imports of petroleum products.
Published on 2024-03-04

South Korea GDP Growth Steady in Q4, Beats Forecasts
South Korea’s economy advanced 0.6 % QoQ in the December quarter of 2023, the same pace as both third and second quarter, a preliminary estimate showed, beating forecast of 0.5% growth. On the expenditure side, private consumption maintained a growth rate of 0.2% (unchanged from Q3), as final consumption expenditure of resident households abroad increased, though expenditures on goods decreased. Government consumption grew 0.4% (versus +0.2% in Q3), attributed to increased expenditures on goods and social security benefits in kind, such as health care benefits. Construction investment contracted by 4.2% (versus +2.1% in Q3), with declines in both building construction and civil engineering. Facilities investment rose 3% (versus +0.2% in Q3), driven by an increase in transportation equipment. Exports expanded by 2.6% (versus +3.4% in Q3), driven by higher exports of semiconductors. Imports increased by 1% (versus +2.3% in Q3), primarily due to higher imports of petroleum products.
Published on 2024-01-24

South Korean GDP Advances 0.6% in Q3
South Korea’s economy expanded 0.6% quarter-on-quarter in the September quarter of 2023, the same pace as the prior quarter, a second reading showed. On the expenditure side, private consumption grew by 0.3 percent (vs -0.7% in Q2), as expenditures on services (e.g., restaurants & accommodations, recreation & culture) increased. Government consumption grew by 0.2 percent (vs -2.1% in Q2), with increased expenditures on social security benefits in kind (e.g., actuarial budget). Construction investment expanded by 2.1 percent (vs -0.8% in Q2) as building construction and civil engineering both increased. Facilities investment fell by 2.2 percent (vs +0.5% in Q2), as investment in machinery decreased. Meanwhile, exports rose by 3.4 percent, as exports of semiconductors and machinery & equipment increased. Imports went up by 2.3%, mainly due to increased imports of petroleum products.
Published on 2023-12-04

South Korean Q3 GDP Growth Above Forecasts
South Korea’s economy advanced 0.6% quarter-on-quarter in the September quarter of 2023, at the same pace as the prior quarter and exceeding market expectations of 0.5% expansion, a preliminary reading showed. On the expenditure side, private consumption grew by 0.3% (vs -0.7% in Q2), as expenditures on services (e.g., restaurants & accommodations, recreation & culture) increased. Government consumption rose by 0.1% (vs -2.1% in Q2), with increased social security benefits in kind. Construction investment expanded by 2.2% (vs -0.8% in Q2),as building construction and civil engineering both increased. Facilities investment decreased by 2.7% (vs +0.5% in Q2), driven by a decrease in machinery. Exports rose by 3.5% (vs -0.9% in Q2), as semiconductors and machinery & equipment increased. Imports were up by 2.6% (vs -3.7% in Q2), owing to increased imports of petroleum products. On an annual basis, South Korea’s economy expanded 1.4% in Q3 following a 0.9% growth in March quarter.
Published on 2023-10-25

South Korean Economy Grows 0.6% in Q2
South Korea’s economy expanded 0.6% QoQ in the second quarter of 2023, accelerating from a 0.3% growth in the first quarter and exceeding market expectations for a 0.5% expansion, a second reading showed. On the expenditure side, private consumption fell by 0.1%, as expenditures on semi-durable goods (e.g. clothing & footwear) and services (e.g. restaurants & accommodation) decreased. Government consumption also decreased by 2.1%, due to a decline in expenditures on social security benefits in kind. Construction investment contracted by 0.8% as well, driven by a decrease in civil engineering. Facilities investment fell by 0.5%, as investment in machinery increased, despite decreased investment in transportation equipment. Exports decreased by 0.9%, owing to reduced exports of petroleum products and transportation services, although semiconductors and motor vehicles increased. Imports dropped by 3.7%, mainly due to decreased imports of crude oil and natural gas.
Published on 2023-09-04