South Korea's economy grows 1% in Q3 on chip boom

· Economy · South Korea

South Korea's economy expanded 1% in the third quarter from the previous three months, the Bank of Korea said Tuesday, driven by strong exports and investment. The chip-led expansion underscores how AI demand for semiconductors is cushioning Asia's fourth-largest economy. A separate central bank survey showed consumer sentiment fell in October, weighed down by a stock market correction and Middle East tensions, suggesting the recovery is uneven. The data lands as Seoul's policy mix faces pressure from trade uncertainty and volatile financial markets.

Why it matters：Chip demand is keeping a major US ally and tech exporter growing even as consumer mood sours, a signal for the global AI supply chain.

Key points

  • Growth was led by exports and investment, the BOK said.
  • Consumer sentiment fell in October on a stock correction and Mideast tensions.
  • The reading covers the third quarter of 2026.

Sources (original reporting)

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