BOK reports South Korea's GDP decreased 0.3 percent in Q4 2025
The Bank of Korea (BOK) announced that South Korea's real gross domestic product (GDP) decreased by 0.3 percent quarter-on-quarter in the fourth quarter of 2025. In contrast, real gross domestic income (GDI) increased by 0.8 percent.
Consumption growth offsets investment decline
On the expenditure side, private consumption grew by 0.3 percent, driven by increased spending on services like health.
Government consumption also rose by 0.6 percent due to health care benefits.
However, construction investment shrank by 3.9 percent, with declines in both building and civil engineering.
Facilities investment decreased by 1.8 percent, primarily in transportation equipment.
Exports fell by 2.1 percent, led by motor vehicles and machinery, while imports decreased by 1.7 percent, notably in natural gas and motor vehicles.
On the production side, agriculture, forestry, and fishing expanded by 4.6 percent due to higher crop yields.
Manufacturing decreased by 1.5 percent, and electricity, gas, and water supply shrank by 9.2 percent.
Construction also fell by 5.0 percent, but services expanded by 0.6 percent, supported by finance and insurance and human health services.
Annual growth slows to 1.0 percent
For the full year 2025, South Korea's real GDP increased by 1.0 percent.
This annual growth was supported by continued expansion in exports and increased private and government consumption.
However, the decline in construction investment widened significantly over the year.
On the production side, services growth expanded, while manufacturing growth slowed, and the contraction in construction deepened.
Real GDI for 2025 expanded by 1.7 percent, outpacing real GDP growth.
Year-on-year, real GDP increased by 1.5 percent in the fourth quarter of 2025, indicating a deceleration compared to the annual growth rate.