Korean GDP grows 1.0 percent as private consumption contracts
Korea's real GDP rose 1.0 percent quarter-on-quarter and 3.4 percent year-on-year in Q3 2026, the Bank of Korea (BOK) reported on October 27, 2026. Private consumption fell despite higher investment and exports.
Investment rises as households retrench
Quarterly GDP growth accelerated from 0.6 percent in Q2. Private consumption fell 0.2 percent as spending on goods and services declined.
Government consumption rose 1.9 percent on higher goods spending and health care benefits.
Construction investment increased 0.7 percent as civil engineering expanded.
Facilities investment grew 4.1 percent, supported by machinery, including semiconductor manufacturing equipment.
Intellectual property investment rose 2.3 percent as research and development and software increased.
Exports grew 2.3 percent, led by semiconductors and machinery and electrical equipment.
Imports rose 2.4 percent on crude oil and semiconductor manufacturing equipment.
Real gross domestic income increased 3.4 percent.
Manufacturing outpaces service growth
Manufacturing expanded 2.0 percent quarter-on-quarter, led by computer, electronic and optical products and machinery and equipment.
Agriculture, forestry and fishing grew 5.9 percent on higher crop yields and fishing output.
Electricity, gas and water supply rose 3.7 percent, mainly on electricity production.
Construction grew 2.0 percent as civil engineering increased.
Services expanded 0.2 percent, supported by business activities, information and communication and transportation and storage.
Real gross domestic income rose 18.8 percent year-on-year.
Growth remains uneven
The quarterly expansion combined stronger investment and exports with declining household spending.
Manufacturing growth also exceeded services growth, showing uneven momentum across production sectors.
These advance estimates provide an initial reading, with more detailed quarterly estimates due within 70 days of quarter-end.