South Korea 2025 Growth Slows to 1.0% as Q4 GDP Shrinks 0.3%

South Korea 2025 growth slowed to 1.0%, the weakest pace since 2020, supported by solid exports but weighed down by a sharp fall in construction investment, preliminary Bank of Korea data showed.

The economy unexpectedly contracted 0.3% quarter-on-quarter in October–December, its first contraction in six months and the weakest since late 2022, missing the central bank’s prior forecast for a small expansion.

Construction investment fell 3.9% from the prior quarter, while exports declined 2.1% and private consumption edged up 0.3%.

A Bank of Korea official cited base effects after strong third-quarter growth and weakness in construction.

The central bank expects growth to improve in 2026, supported by semiconductors and exports.