South Korea's economy grew faster than expected in the third quarter, and the AI boom continued to drive strong semiconductor export growth, offsetting the impact of weakness in other sectors. According to preliminary data released by the Bank of Korea on Tuesday, South Korea's gross domestic product increased 1.0% from July to September compared to the previous quarter, after rising 0.6% from April to June. According to the data, the country's economy grew by 3.4% year on year, with a growth rate of 3.7% in the second quarter. The GDP growth rate in the third quarter exceeded market expectations. The median forecast of the 19 economists surveyed in the media was 0.7% month-on-month and 3.3% year-over-year growth. Exports remain a key driver of overall growth, and global investment in AI infrastructure supports semiconductor demand. Korea is home to memory chip makers Samsung Electronics and SK Hynix. Investment in equipment, including chip-making equipment and other machinery expenses, increased sharply from the previous quarter, while private consumption contracted. Construction investment resumed growth in the third quarter, and government spending grew faster than in the previous quarter.

South Korea's economy grew faster than expected in the third quarter, and the AI boom continued to drive strong semiconductor export growth, offsetting the impact of weakness in other sectors. According to preliminary data released by the Bank of Korea on Tuesday, South Korea's gross domestic product increased 1.0% from July to September compared to the previous quarter, after rising 0.6% from April to June. According to the data, the country's economy grew by 3.4% year on year, with a growth rate of 3.7% in the second quarter. The GDP growth rate in the third quarter exceeded market expectations. The median forecast of the 19 economists surveyed in the media was 0.7% month-on-month and 3.3% year-over-year growth. Exports remain a key driver of overall growth, and global investment in AI infrastructure supports semiconductor demand. Korea is home to memory chip makers Samsung Electronics and SK Hynix. Investment in equipment, including chip-making equipment and other machinery expenses, increased sharply from the previous quarter, while private consumption contracted. Construction investment resumed growth in the third quarter, and government spending grew faster than in the previous quarter.