(URGENT) S. Korea's GDP expands 1 pct in Q3 on strong exports, investment: BOK

Seoul, Oct. 27 (Yonhap) -- South Korea's economy expanded 1 percent in the third quarter, bolstered by robust exports and investment, according to figures released by the Bank of Korea (BOK) on Tuesday. The country's real gross domestic product (GDP) rose 1 percent from the previous quarter, surpassing the BOK's initial forecast of 0.3 percent growth in August.

This marked the first time quarterly growth exceeded 1 percent since the third quarter of 2020, when the economy expanded 2.2 percent. Year-over-year, the South Korean economy grew 3.4 percent in the third quarter, a slight slowdown from the 3.7 percent increase in the preceding quarter. However, the AI infrastructure boom and soaring global demand for semiconductors contributed to a stronger first-quarter growth of 1.8 percent in 2026, the economy's best quarterly performance since the third quarter of 2020.

Exports surged 2.3 percent from the prior quarter, while imports climbed 2.4 percent, with government spending up 1.9 percent. Net exports added a mere 0.1 percentage point to the quarterly GDP growth. Facility investment grew 4.1 percent, and construction investment rose 0.7 percent on a quarterly basis. However, private consumption declined 0.2 percent.

The real gross domestic income (GDI), which accounts for trade-related changes, surged 18.8 percent year-over-year in the third quarter, the highest increase since the fourth quarter of 1977. The Bank of Korea may raise its growth forecast of 3.3 percent, initially announced in August, following the stronger-than-anticipated third-quarter growth.