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yesterday

Exports and Stimulus Lift South Korea’s Q3 Growth to 1.2%, Fastest in Six Quarters

Unresolved U.S. trade talks pose a tariff risk to the nascent recovery.

A woman carrying meals on her head makes her way through shoppers at a traditional market in Seoul, South Korea, January 4, 2024. REUTERS/Kim Hong-Ji
Kim Jae-hoon (L), the finance ministry's director-general for economic policy, talks to reporters at the government complex in Sejong on Oct. 28, 2025. (Yonhap)
Image
This Oct. 12, 2025, file photo shows containers stacked at a port in the South Korean city of Pyeongtaek. (Yonhap)

Overview

  • Advance Bank of Korea estimates show GDP rose 1.2% quarter on quarter and 1.7% year on year in Q3, the strongest pace since early 2024.
  • Private consumption increased 1.3% from Q2 after supplementary budgets and cash handouts boosted household spending.
  • Exports grew about 1.5% on the quarter led by semiconductors and motor vehicles, while facility investment rebounded 2.4%.
  • The construction sector remained a drag year on year, and the central bank cautioned that the impact of U.S. tariffs on exports will likely grow over time.
  • The finance ministry signaled a lift of the 2025 growth forecast to roughly 1.0% as trade talks with Washington over a 15% tariff cap and a $350 billion investment pledge remain unresolved, with a Lee–Trump meeting set during APEC.