South Korea’s Economy Grows as Semiconductor Demand
Former U.S. President Joe Biden is facing a worsening health situation after his son Hunter Biden said the cancer has spread to his bones and described the disease as "very painful" and "very debilitating."
Increased exports of machinery and electrical equipment, according to preliminary economic data reported by Reuters.
Exports and technology drive expansion
The economy grew by 1% compared with the previous quarter, accelerating from 0.6% growth in the second quarter. Annual growth reached 3.4%, exceeding economists’ expectations, Reuters reported.
The country’s technology industry remained a major driver. Strong global demand for semiconductors helped lift exports, alongside shipments of machinery and electrical equipment. Total exports exceeded $800 billion during the first nine months of 2026, putting South Korea on course to surpass $1 trillion in annual exports if the momentum continues.
Investment rises, but consumer spending weakens
Investment in facilities increased by 4.1%, reflecting stronger spending on equipment, including machinery used in semiconductor manufacturing. However, private consumption declined by 0.2%, its first quarterly fall in nearly four years. The contrasting figures highlight a challenge for policymakers: export-led growth is strengthening, but household spending has not kept pace. Sustaining the recovery may depend on whether strong industrial activity spreads more broadly across the domestic economy.
Outlook for South Korea
South Korea’s export performance will remain closely linked to global demand for advanced chips and technology products. Continued investment could support industrial production, although weaker consumer spending and changing international trade conditions remain risks.
The latest figures point to an economy gaining momentum through technology and exports, while domestic demand remains a key area to watch.
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