Chip boom fails to lift spending as private consumption falls
Korea's economy is growing on the back of a semiconductor export boom, but consumers aren't feeling the benefits. Private consumption fell 0.2 percent in the third quarter from the previous quarter, marking its first decline since the second quarter of 2023, according to preliminary data on third quarter economic growth from the Bank of Korea (BOK), Tuesday. Private spending growth had already…
South Korea's economy has been driven by a surge in semiconductor exports, yet consumer spending remains stagnant. According to preliminary data from the Bank of Korea, private consumption contracts by 0.2 percent in the third quarter, marking the first decline since the second quarter of 2023. This is despite the economy expanding by 1 percent in the same period, surpassing the central bank's forecast of 0.3 percent growth.
The slowdown in private spending was observed across various sectors, including both goods like cars and home appliances, and services such as financial and dining services. The decline came despite the robust export boom, which has fueled overall economic growth. The Bank of Korea attributes the fall in private consumption to a drop in consumer confidence and spending power.
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- Chip boom fails to lift spending as private consumption falls koreatimes.co.kr
