South Korea's GDP beats forecasts

Annual growth reached 3.4%, above expectations of 3% but below the previous quarter's 3.7%. Exports rose 2.3%, facilities investment increased 4.1%, and private consumption declined 0.2%.

Strong demand for AI semiconductors was the main driver of growth. The central bank estimates that the chip sector accounted for approximately half of the expansion. However, declining household consumption suggests the recovery remains uneven across the economy.