South Korea economy grows 1.0% in Q3 driven by semiconductor surge

South Korea's economy grew by 1.0% in the third quarter of 2026 compared to the previous quarter, significantly exceeding the Bank of Korea's preliminary forecast of 0.3%. This expansion was primarily driven by a 2.3% increase in exports, fueled by high global demand for semiconductors, machinery, and electrical equipment.

Electronic component exports reached a record $148 billion, representing a 218.7% year-on-year increase. Additionally, investment in facilities rose by 4.1%, supported by the acquisition of chip manufacturing equipment. On a year-on-year basis, the country's GDP expanded by 3.4%.

Despite the industrial boom, private consumption fell by 0.2% as households reduced spending due to inflation and rising debt. While government consumption rose by 1.9%, authorities remain concerned about financial stability risks, including high household debt and rising real estate prices in the Seoul region.