South Korea Q3 GDP Grows 1%, Beating Forecasts as AI Chip Boom Lifts Exports; Samsung, SK Hynix Jump Over 4%

SentiSense · Published Oct 26, 2026, 7:17 PM ET · Updated Oct 27, 2026, 8:06 AM ET

South Korea's economy grew 1.0% quarter on quarter in July-September, beating the 0.7% median in a Reuters poll and the Bank of Korea's own 0.3% August forecast, as chip exports and semiconductor equipment investment surged while private consumption fell 0.2%. Seoul stocks rallied the same day: the KOSPI closed up 3.09% after an intraday gain of more than 4%, with Samsung Electronics up 4.23% and SK hynix up 5.18%, helped by an overnight US chip rally.

South Korea's economy expanded 1.0% in the third quarter from the previous three months, the Bank of Korea's advance estimate showed on Tuesday, October 27, accelerating from 0.6% in the second quarter and beating the 0.7% median in a Reuters poll of economists. Year on year, GDP grew 3.4%, ahead of the 3.0% expected, after 3.7% in the second quarter. The print was more than triple the central bank's own August projection of 0.3%, according to Korea JoongAng Daily.

The engine was semiconductors. Exports rose 2.3% on demand for chips, machinery and electrical equipment, and facilities investment jumped 4.1%, led by semiconductor manufacturing equipment, Reuters reported. The BOK estimated that the IT sector accounted for about 60% of growth from a year earlier, with semiconductors alone contributing about half, per The Korea Times. Government spending rose 1.9% and construction investment 0.7%, but private consumption fell 0.2%, its first decline in nearly four years.

Equities moved sharply higher the same session. The KOSPI was up 4.39% in morning trade, per a Reuters market report, and closed up 3.09% at 5,638.34, according to Seoul Economic Daily, recovering from a 1.46% drop the day before. Samsung Electronics closed up 4.23% and SK hynix (SKHY) up 5.18%, with foreign investors net buyers of 590.9 billion won. The GDP beat was only part of the story: Seoul coverage pointed first to a 2.82% overnight jump in the Philadelphia Semiconductor Index, with MU, AMD and NVDA higher, and to Anthropic's S-1 filing for a US listing.

What to watch next: SK hynix reports third-quarter results on October 28 and Samsung Electronics on October 29, which may test whether the AI memory cycle behind the GDP surprise is still accelerating. The BOK is expected to revise its 3.3% full-year forecast next month; an official said annual growth of 4% is possible if fourth-quarter growth reaches 1.4% or more. Weak household spending and the economy's heavy dependence on one export category remain the main risks to that outlook.

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