This article is by Han Young-hye and read by an artificial voice.



Korea's GDP grew 1.2 percent in the third quarter this year compared to the previous quarter, buoyed by a rebound in consumer spending and facility investment, as well as continued strength in exports, according to preliminary data released by the Bank of Korea (BOK) on Tuesday.

The figure marks the highest quarterly growth rate since the first quarter of 2024, when the economy also grew 1.2 percent. It also surpassed the central bank's earlier forecast of 1.1 percent made in August.

Korea's GDP growth had faltered since the start of last year, contracting by 0.2 percent in the second quarter of 2024 and again in the first quarter this year. After recovering to 0.7 percent in the second quarter of this year, the economy continued its upward trajectory into the third quarter.

Private consumption rose 1.3 percent, with increased spending on goods such as passenger cars and communication devices, as well as services like dining and health care. Government spending also rose 1.2 percent, driven by higher expenditure on goods and national health insurance benefits.

Both private and government consumption marked their highest growth rates in over two years.

Facility investment climbed 2.4 percent, largely due to stronger investment in machinery, including equipment for semiconductor manufacturing.

Exports increased 1.5 percent, led by strong performance in semiconductors and automobiles. Imports also rose 1.3 percent, driven by demand for machinery, equipment and vehicles, but at a slower pace than exports.

Construction investment dipped 0.1 percent, continuing a six-quarter streak of contraction, due mainly to sluggish building construction.

Domestic demand contributed 1.1 percentage points to the third-quarter growth rate, while net exports contributed 0.1 percentage points. Private consumption, government spending and facility investment contributed 0.6, 0.2 and 0.2 percentage points respectively.

By industry, manufacturing output rose 1.2 percent, led by transport equipment, computers and electronics. The services sector grew 1.3 percent on the back of improvements in retail, hospitality and financial services.

Utilities rebounded sharply, with electricity supply driving a 5.6 percent rise after a 5.4 percent decline in the first quarter.

Construction held steady overall, as gains in civil engineering offset a decline in building construction. The agriculture, forestry and fisheries sector fell 4.8 percent due to weak crop production.

Real gross domestic income grew 0.7 percent, lagging behind the 1.2 percent GDP growth, suggesting weaker gains in terms of purchasing power.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.