South Korea Economy Expands 1.2% in Q3

South Korea’s economy grew 1.2% quarter-on-quarter in the three months to September 2025, marking the fastest pace in 1-½-years on strong exports and solid private consumption. Household spending rose 1.3%, supported by higher outlays on goods such as motor vehicles and communication equipment, as well as services including dining and healthcare. Government consumption climbed 1.2%, driven by increased spending on goods and healthcare benefits. Construction investment slipped 0.1% due to weaker building activity, while facilities investment advanced 2.4% on robust demand for semiconductor equipment. Exports gained 1.5%, led by semiconductors and motor vehicles, and imports grew 1.3% on higher inflows of machinery, equipment, and vehicles. On an annual basis, South Korea’s economy expanded 1.7% in Q3, accelerating from a 0.6% growth in Q2.