South Korea’s economy experienced a 1% growth in 2025, driven by robust exports, according to central bank data released Tuesday. However, the fourth quarter revealed negative growth.
The nation’s real gross domestic product (GDP), a primary indicator of economic expansion, decreased by 0.2% in the fourth quarter (October-December) compared to the previous quarter. This is an improvement from the initial estimate of a 0.3% contraction, as reported by the Bank of Korea (BOK).
This contraction marks the first quarterly decline since the first quarter (January-March) of the previous year, when the economy also contracted by 0.2%.
Year-on-year GDP growth for the fourth quarter stood at 1.6%, a decrease from the 1.8% year-on-year growth recorded in the preceding quarter.
Overall, the South Korean economy grew by 1% in 2025, aligning with the BOK’s prior forecast, but representing a slowdown from the 2% growth achieved in the previous year.
The data also indicated that South Korea’s per capita gross national income (GNI) reached $36,855 in 2025, a 0.3% increase compared to the previous year.
