[BREAKING] Korea’s economy grows 1% in Q3 on chip exports, beating forecasts

Korea’s economy expanded 1 percent in the third quarter from the previous quarter, extending its stronger-than-expected recovery on the back of booming semiconductor exports, the Bank of Korea (BOK) said Tuesday.

Preliminary data from the central bank showed that real gross domestic product (GDP) rose 1 percent in the July-September period, exceeding the BOK’s own projection of 0.3 percent for the quarter.

Facilities investment rose 4.1 percent, mainly on increased investment in machinery, including semiconductor manufacturing equipment. Investment in intellectual property products grew 2.3 percent as spending on research and development and software increased.

Exports grew 2.3 percent, driven mainly by semiconductors and machinery and electrical equipment. Imports rose 2.4 percent, led by increases in crude oil and semiconductor manufacturing equipment.

The stronger-than-expected growth puts the economy on a firmer footing to meet the BOK’s growth forecast of 3.3 percent for this year, released in August.

The country’s quarterly growth rebounded sharply from a 0.1 percent contraction in the fourth quarter of 2025 to 1.8 percent in the first quarter, before expanding 0.6 percent in the second quarter, also beating expectations.