Overview
- Preliminary GDP rose 1.2% quarter on quarter and 1.7% year on year in Q3, the fastest pace in six quarters, according to the Bank of Korea.
- Private consumption climbed 1.3% quarter on quarter, helped by cash handouts and consumption coupons, while exports advanced on semiconductors and motor vehicles.
- The Bank of Korea plans a revised outlook in November, and Governor Rhee Chang-yong said growth this year will likely exceed 1%; the finance ministry also hinted at lifting its forecast to 1%.
- The recovery is uneven as construction remains a drag, and analysts note the rebound leans on temporary fiscal support.
- Trade policy uncertainty persists as talks with the United States over a US$350 billion investment package continue; Seoul says tariffs were restored to 15% after an August hike, and a Reuters poll points to a slight October export decline.