South Korea GDP Grows 1.0% on Semiconductor Export Surge

South Korea reported a 1.0% economic growth rate for the third quarter of 2026, surpassing economist projections of 0.7%. This expansion was primarily fueled by a 4.1% increase in facilities investment and a surge in chip exports, driven by high demand for semiconductor manufacturing equipment. On a year-on-year basis, the country's GDP grew 3.4%.

Total exports from January through September exceeded $800 billion. This performance puts the nation on track to surpass $1 trillion in annual exports, a milestone previously achieved only by China, Germany, and the United States. While exports of electric equipment, machinery, and semiconductors rose 2.3%, private consumption fell 0.2%, representing the first decline in nearly four years.

The Bank of Korea maintained a hawkish monetary stance, upgrading its growth forecasts. This follows a series of interest rate hikes in July and September, although the bank kept rates unchanged last week.