South Korea's Economy Shrinks Amid Export Decline, Housing Bubble Fears
Economy
C
CNBC TV18•22-01-2026, 07:00
South Korea's Economy Shrinks Amid Export Decline, Housing Bubble Fears
- •South Korea's GDP contracted by 0.3% in the last quarter of 2025, driven by a widespread decline in demand.
- •Net exports decreased by 2.1% after a 2.1% rise in the prior quarter, with a weak won potentially exaggerating import costs.
- •Private consumption growth dropped to 0.3%, and investments in facilities and construction fell by 1.8% and 3.9% respectively.
- •Seoul flat prices continued to rise for the 50th consecutive week, creating a property market bubble and increasing household debt concerns.
- •The uneven 'K-shaped' recovery shows semiconductor exports outperforming small businesses, masking structural imbalances.
Why It Matters: South Korea's economy contracted due to falling exports and domestic demand, exacerbated by a housing bubble.
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