South Korean economy grows on chip exports
Initial figures point to stronger growth, but full details are not yet independently available.
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The South Korean economy grew more strongly in the third quarter than in the previous quarter, Yonhap reports, citing figures from the Bank of Korea. It remains unclear how much exports and investment related to semiconductors contributed to the growth. A full breakdown from the central bank is not yet available.
The Bank of Korea had scheduled the preliminary estimate of gross domestic product for the third quarter for Tuesday 27 October. In the second quarter, the economy grew by 0.6 per cent compared with the previous quarter, according to the central bank.
The growth follows exceptionally strong exports. According to South Korea’s Ministry of Trade, exports rose by 83.5 per cent in September compared with a year earlier, reaching $120.9 billion. Semiconductor exports increased by 262.8 per cent to $60.3 billion.
The figures underline South Korea’s heavy dependence on the chip industry. Reuters reported before the publication that the median of economists’ expectations was quarterly growth of 0.7 per cent. They pointed out that domestic demand remains weaker and that high household debt could restrain consumption.
For Dutch companies dependent on South Korean chips, changes in chip exports could affect prices, delivery times and investment in Europe.
The exact contribution of consumption, investment and exports to the quarterly figure is not yet known. The Bank of Korea had announced a preliminary estimate for this date.
Also show the region and a close-up
One story, several perspectives
What is established
- The Bank of Korea published a preliminary GDP estimate for the third quarter on 27 October.
- The economy grew by 0.6 per cent quarter on quarter in the second quarter.
- Exports, and semiconductor exports in particular, rose sharply in September.
- Domestic demand and household consumption remain areas of concern.
Left
Arguments Growth should be assessed in terms of broad prosperity, not just export figures. The government should do more to protect households and workers from debt, high housing costs and an economy that primarily benefits large technology companies.
Values Equality, social security and a balanced distribution of economic growth.
Consequences Greater support for households and public investment could strengthen domestic demand, but would also require additional government spending.
Centre
Arguments The government should continue supporting the chip sector and research, while preventing the economy from becoming too dependent on one industry and export market. Financial-sector stability and gradual debt reduction are important.
Values Economic stability, competitiveness and institutional prudence.
Consequences A combination of industrial policy and fiscal discipline could make growth more sustainable, but might produce less spectacular figures in the short term.
Right
Arguments The strong exports show that companies should be given room to compete internationally. Less regulation, lower burdens and a more flexible labour market could further stimulate investment and innovation.
Values Entrepreneurship, competition and limited government intervention.
Consequences More market-oriented reforms could raise productivity, but could also lead to greater income disparities and increased vulnerability to a downturn in the chip sector.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The context concerning the publication date, previous growth and exports was checked against public sources. The final third-quarter figure and its precise composition were not yet fully independently available.
- confirmed The Bank of Korea had scheduled the preliminary GDP estimate for 27 October. — The central bank’s publication calendar lists the preliminary third-quarter estimate for this date. source
- confirmed South Korea’s GDP grew by 0.6 per cent quarter on quarter in the second quarter. — This is stated in the Bank of Korea’s preliminary GDP publication. source
- confirmed Exports rose by 83.5 per cent in September and semiconductor exports by 262.8 per cent. — These figures appear in a press release from South Korea’s Ministry of Trade. source
- confirmed Economists had expected average growth of 0.7 per cent in the third quarter. — Reuters published this median from a poll of sixteen economists. source
- confirmed The precise composition of the new quarterly figure was not yet fully verifiable. — The central-bank publication containing the full breakdown was not available when the edition closed. source
Editor's note
The first report on the quarterly figure cannot yet be fully verified through a public publication by the Bank of Korea. Export figures, the publication date and the economists’ prior expectation can be checked.Sources
- Statistische publicatiekalender oktober 2026 — Bank of Korea
- September exports reach record $120.9 billion — Ministry of Trade, Industry and Resources
- South Korea's economy growth likely picked up in Q3 on chip exports — Reuters via MarketScreener