FX.co ★ South Korea’s Economy Slips into Contraction in Q1 2026 as GDP Falls 0.2% QoQ

South Korea’s economy moved into reverse at the start of 2026, with gross domestic product (GDP) shrinking by 0.2% quarter-on-quarter in the first quarter of the year, according to data updated on 9 March 2026. The decline marks a sharp turnaround from the 1.3% quarter-on-quarter expansion recorded in the fourth quarter of 2025.

The figures, measured on a quarter-on-quarter comparison basis, show that momentum built up at the end of 2025 has stalled. The previous reading reflected growth in Q4 2025 compared with the prior quarter, while the latest data captures the change in GDP from Q4 2025 to Q1 2026. The shift from solid expansion to mild contraction underscores a weakening in South Korea’s short-term growth trajectory as 2026 begins.