The Bank of Korea says GDP rose 1.0% quarter on quarter and 3.4% year on year in July–September, well above its 0.3% forecast, powered by semiconductor exports and investment.
South Korea's economy expanded by 1.0% in the third quarter of 2026 compared with the previous quarter, according to the Bank of Korea's advance estimate published on 27 October. In year-on-year terms, real gross domestic product rose by 3.4%. Euronews reported that the quarterly result was more than three times the 0.3% growth the central bank had forecast in August.
The central bank's release also showed real gross domestic income, a measure of purchasing power, rising 3.4% on the quarter and 18.8% on the year. Euronews, citing the Bank of Korea, said exports rose 2.3% in the quarter, led by semiconductors, machinery and electrical equipment, while investment in facilities climbed 4.1%, largely on spending for chip-making machinery. It also cited government figures showing semiconductor exports up 218.7% year on year to $148 billion.
Analysts quoted by Euronews welcomed the data but flagged the concentration of growth in a single industry. Bloomberg Economics' Kwon Hyo-sung said the figures support the central bank's view that booming chip demand is sustaining exports and investment, while Moody's Analytics economist John Bromhead warned that South Korea is exposed if global AI spending slows. The figures are preliminary and may be revised in later releases.
