Driven by government stimulus measures and exports to withstand tariff pressure, the South Korean economy accelerated in the third quarter, and the growth rate was stronger than expected. According to preliminary data released by the Bank of Korea on Tuesday, the gross domestic product in July-September increased by 1.2% compared to the previous quarter. In contrast, the revised month-on-month growth rate for the second quarter of this year was 0.7%. The central bank said that the country's economy grew 1.7% year on year in the third quarter, compared with a revised year-on-year increase of 0.6% in the previous quarter. The latest data has surpassed market expectations. Economists surveyed by the media previously predicted that the economy would grow 1.0% month-on-month and 1.5% year-on-year. Government spending, private consumption, and equipment investment have led to economic growth, mainly due to a series of cash payments and other financial support to households, but construction investment remains sluggish. South Korea's exports, which account for more than 40% of its GDP, have maintained steady growth despite the challenges brought about by increased US tariffs and global trade uncertainty. The surge in demand related to artificial intelligence continues to boost semiconductor shipments. The Bank of Korea said at a policy meeting last week that the country's economy is still expected to meet its August forecast of 0.9% growth in 2025 and 1.6% growth in 2026; compared with 2.0% growth in 2024.

Driven by government stimulus measures and exports to withstand tariff pressure, the South Korean economy accelerated in the third quarter, and the growth rate was stronger than expected. According to preliminary data released by the Bank of Korea on Tuesday, the gross domestic product in July-September increased by 1.2% compared to the previous quarter. In contrast, the revised month-on-month growth rate for the second quarter of this year was 0.7%. The central bank said that the country's economy grew 1.7% year on year in the third quarter, compared with a revised year-on-year increase of 0.6% in the previous quarter. The latest data has surpassed market expectations. Economists surveyed by the media previously predicted that the economy would grow 1.0% month-on-month and 1.5% year-on-year. Government spending, private consumption, and equipment investment have led to economic growth, mainly due to a series of cash payments and other financial support to households, but construction investment remains sluggish. South Korea's exports, which account for more than 40% of its GDP, have maintained steady growth despite the challenges brought about by increased US tariffs and global trade uncertainty. The surge in demand related to artificial intelligence continues to boost semiconductor shipments. The Bank of Korea said at a policy meeting last week that the country's economy is still expected to meet its August forecast of 0.9% growth in 2025 and 1.6% growth in 2026; compared with 2.0% growth in 2024.