South Korea's economy grew 1.0 percent in the third quarter from the previous quarter. Exports rose, led by semiconductors, and facilities investment also expanded, but private consumption fell. Real gross domestic income (GDI) increased at a pace above economic growth.

Real gross domestic product (GDP) in the third quarter rose 1.0 percent from the previous quarter, the Bank of Korea said on Oct. 27 in a preliminary estimate. From a year earlier, it grew 3.4 percent.

Quarterly growth rebounded to 1.8 percent in the first quarter from minus 0.1 percent in the fourth quarter of last year. It then posted 0.6 percent in the second quarter and 1.0 percent in the third quarter.

On the expenditure side, exports and facilities investment increased, while private consumption decreased.

Private consumption fell 0.2 percent from the previous quarter as both goods consumption, including passenger cars and home appliances, and services consumption, including finance and food, declined. From a year earlier, it rose 1.1 percent.

Government consumption rose 1.9 percent from the previous quarter as spending increased on goods and services and health insurance benefits.

Construction investment increased 0.7 percent on gains in civil engineering construction. Facilities investment rose 4.1 percent, led by machinery such as semiconductor manufacturing equipment. Investment in intellectual property products increased 2.3 percent as research and development and software investment expanded.

Exports increased 2.3 percent from the previous quarter, led by semiconductors and machinery and electrical equipment. Imports expanded 2.4 percent as imports increased for crude oil and semiconductor manufacturing equipment. From a year earlier, exports and imports rose 8.6 percent and 7.0 percent, respectively.

By sector, manufacturing grew 2.0 percent from the previous quarter as output increased for computers, electronic and optical equipment, and machinery and equipment. From a year earlier, it rose 7.0 percent.

Services increased 0.2 percent, led by business services, information and communications, and transportation. Within services, financial and insurance activities fell 4.3 percent from the previous quarter.

Construction grew 2.0 percent on increased civil engineering construction, while electricity, gas and water supply rose 3.7 percent, led by electricity. Agriculture, forestry and fisheries expanded 5.9 percent as output rose in cultivation and fisheries.

Real gross domestic income (GDI) rose 3.4 percent from the previous quarter, exceeding real GDP growth of 1.0 percent over the same period by 2.4 percentage points. From a year earlier, it rose 18.8 percent, higher than the 3.4 percent increase in real GDP.