South Korea's economy rebounds with 1.9% growth in Q3 2024

Korea's gross regional domestic product (GRDP) rose 1.9 percent from a year earlier in the third quarter, driven by robust outbound shipments of chips and automobiles, government data showed Friday.

The figure marks a sharp acceleration from a 0.6 percent on-year increase in the previous quarter and also the first time since the third quarter of last year when the country's GRDP increased by over 1 percent, according to the data from the Ministry of Statistics.

The ministry said the recovery was largely supported by rising exports of semiconductors, automobiles and ships.

Output in the mining and manufacturing sectors in the greater capital region jumped 7 percent from a year earlier in the July-September period, led by strong semiconductor and electronic components production, the ministry said.

This growth exceeded the national average of a 4.2 percent increase.

Service sector output nationwide rose 2.2 percent on year, supported by increased activities in wholesale and retail trade, as well as the financial and insurance industries.

After slowing to a 0.7 percent on-year expansion in the first quarter, the service sector has shown signs of recovery since the second quarter, when growth reached 1.2 percent.

In particular, the accommodation and food services industry grew 1.6 percent in the third quarter, ending a nine-quarter streak of contraction that began in the second quarter of 2023.

Wholesale and retail trade recorded growth of 4.5 percent, marking its second consecutive quarter of expansion.

The construction sector continued to struggle, with GRDP falling 7.3 percent on year, extending its contraction to a sixth straight quarter.

However, the pace of decline has gradually eased since the first quarter, when output plunged 12.3 percent.