FX.co ★ South Korea Economy Expands 1.2% in Q3

South Korea's economic performance in the third quarter of 2025 showed significant improvement, with a 1.2% increase from the previous quarter. This marks the most rapid expansion observed in 18 months, driven primarily by strong export activities and robust private consumption. Household expenditure increased by 1.3%, largely due to higher investments in goods like motor vehicles and communication devices, alongside services such as dining and healthcare. Government consumption rose by 1.2%, fueled by heightened expenditures on goods and healthcare benefits. Conversely, construction investment saw a slight decline of 0.1%, attributed to reduced building activities, while facilities investment surged by 2.4%, reflecting strong demand for semiconductor equipment. Exports experienced a 1.5% boost, spurred by increased shipments of semiconductors and automobiles, whereas imports saw a 1.3% rise, largely due to increased machinery, equipment, and vehicle inflows. On a yearly basis, the economy grew by 1.7% in the third quarter, accelerating from a 0.6% increase in the second quarter.