South Korea’s economy grew 1% in the third quarter of 2026 from the previous quarter, beating the central bank’s August forecast of 0.3% and accelerating from 0.6% growth in the second quarter, according to advance data from the Bank of Korea released on Tuesday.
Strong semiconductor-led exports and investment drove the result, fuelled by the artificial intelligence infrastructure boom. Exports rose 2.3% on the quarter and hit a record $120.9 billion in September, up 83.5% from a year earlier, with semiconductor shipments above $60 billion, while facility investment jumped 4.1%.
From a year earlier, the economy expanded 3.4%, and cumulative growth over the first three quarters reached 3.6%, putting full-year growth of 3.6% within reach. Private consumption, however, fell 0.2% amid stock market weakness and sluggish car sales. The result matters for Asia’s supply chains, including Pakistan’s technology imports, because Korean chip strength is a barometer of global AI demand.
Sources: Yonhap News Agency, Bank of Korea. Written in our own words for information only.