South Korea GDP Grows 1.0% in Q3 as Semiconductor Exports Surge 218.7%

South Korea's economy grew 1.0% in the third quarter from the prior quarter, more than triple the Bank of Korea's August forecast of 0.3%, as semiconductor demand drove exports and investment, the central bank said Tuesday. Exports rose 2.3%, led by semiconductors, machinery and electrical equipment, while facility investment climbed 4.1% on spending for chip-production machinery. Semiconductor exports jumped 218.7% year-on-year to $148 billion in the quarter, according to government figures. Year-on-year, GDP grew 3.4%, down slightly from 3.7% in the previous quarter. Real gross domestic income surged 18.8% year-on-year, its fastest increase in nearly 49 years, helped by rising chip prices. Analysts cautioned that growth remains concentrated in semiconductors. "The risk is that growth stays heavily concentrated in the semiconductor sector, leaving South Korea exposed to a slowdown in global AI spending," said John Bromhead, senior economist at Moody's Analytics. The chip boom also lifted the current account surplus to a record $116.6 billion in the second quarter.