South Korea GDP grows 1 percent in third quarter on chip exports

South Korea's gross domestic product grew by 1.0 percent in the third quarter of 2026 compared with the previous quarter, according to central bank data released on Tuesday. Euronews and Al Jazeera both reported that the reading exceeded the Bank of Korea's August forecast of 0.3 percent quarterly growth. Al Jazeera added that the economy expanded 3.4 percent on a year-on-year basis. [1][2]

Euronews and Al Jazeera both reported that total exports increased by 2.3 percent from the previous quarter, driven by strong international demand for semiconductors. Al Jazeera noted that exports account for approximately 45 percent of South Korea's gross domestic product. Euronews added that exports of machinery also contributed to the quarterly growth. [1][2]

South Korea, officially known as the Republic of Korea, is located in East Asia on the southern half of the Korean Peninsula. Al Jazeera reported that the nation is the fourth-largest economy in Asia. Grokipedia records that South Korea transformed into a high-income economy through rapid industrialization after the Korean War. [2][11][12]

Euronews reported that economic analysts have issued warnings about South Korea's heavy dependence on the semiconductor sector. Analysts noted that this concentration leaves the national economy vulnerable if global spending on artificial intelligence begins to slow down. [1]