South Korea’s GDP Growth Rate YoY Slips to 1.6% in February
South Korea’s economy posted a 1.6% year-over-year GDP growth rate for February 2026, down from January’s 1.8%. The latest data, released March 9, 2026, highlights a modest slowdown after a brief acceleration at the start of the year. The reading remains above the 12-month average, reflecting resilience in key sectors despite global headwinds.
Big-Picture Snapshot
- Drivers this month:
- Manufacturing output: +0.22pp
- Semiconductor exports: +0.14pp
- Private consumption: +0.09pp
- Construction: -0.05pp
- Policy pulse: The 1.6% YoY print sits just above the Bank of Korea’s medium-term target range of 1.5%–2.0%.
- Market lens: KRW and KOSPI were little changed as the GDP figure closely matched consensus and signaled ongoing stability. Investors interpreted the data as a sign that the recovery remains intact, but with limited upside momentum.
Foundational Indicators
February’s 1.6% YoY growth follows January’s 1.8% and December’s 1.8%, marking the first monthly deceleration since November. The 12-month average stands at 1.23%, with the current reading exceeding this trend. Compared to October’s 1.7% and September’s 0.6%, the economy has maintained positive momentum since mid-2025, rebounding from a flat reading in June and a contraction of -0.1% in April.
- Six-month trend: April -0.1%, June 0.0%, September 0.6%, October 1.7%, December 1.8%, February 1.6%.
- Exports and manufacturing have led the rebound, while construction and services lagged.
- Private consumption contributed positively but slowed from Q4 2025 levels.
Chart Dynamics
Forward Outlook
- Bullish scenario (25%): Export strength and policy support push growth back above 1.8% by mid-2026.
- Base case (60%): GDP growth hovers between 1.5% and 1.7% through Q2, with balanced sectoral contributions.
- Bearish scenario (15%): Weak global demand or domestic shocks drag growth below 1.2% in coming months.
Risks remain two-sided. Upside stems from a potential rebound in global tech demand and fiscal stimulus. Downside risks include persistent weakness in construction and any renewed export headwinds. The Bank of Korea’s policy stance remains data-dependent, with no immediate pressure to adjust rates.
Data source: Sigmanomics, official Bank of Korea releases. Methodology: headline GDP growth rate, year-over-year, seasonally adjusted.
Closing Thoughts
South Korea’s February GDP growth rate signals a resilient, if modest, expansion. The economy has outperformed its 12-month trend, but the latest dip underscores the fragility of the recovery. Policymakers and investors will watch upcoming data for confirmation of sustained momentum or signs of renewed softness.
Key Markets Reacting to GDP Growth Rate YoY
South Korea’s GDP growth readings often ripple through global equity, currency, and crypto markets. The following symbols, verified from Sigmanomics, reflect assets most sensitive to shifts in Korean economic momentum. Each is linked to its official Sigmanomics listing for further detail.
- AAPL — Apple’s supply chain exposure to Korea’s tech sector ties its performance to Korean growth cycles.
- USDJPY — The yen often reacts to Korean macro data as investors rebalance regional risk.
- BTCUSD — Bitcoin volumes in Korea can spike on economic surprises, reflecting local sentiment shifts.
| Year | GDP Growth Rate YoY (%) | AAPL Annual Return (%) |
|---|---|---|
| 2020 | -0.9 | 82.3 |
| 2021 | 4.1 | 34.0 |
| 2022 | 2.6 | -26.8 |
| 2023 | 1.4 | 48.2 |
| 2024 | 1.5 | 49.0 |
| 2025 | 1.8 | 37.5 |
Since 2020, AAPL’s returns have loosely tracked Korea’s GDP growth cycles, with stronger years for both in 2021 and 2024. Correlation is moderate, reflecting both direct supply chain links and broader risk appetite.
Frequently Asked Questions
- What is the headline figure for South Korea’s GDP Growth Rate YoY in February 2026?
- The GDP Growth Rate YoY for South Korea in February 2026 is 1.6%, down from January’s 1.8%.
- How does the latest GDP growth rate compare to the 12-month average?
- February’s 1.6% reading is above the 12-month average of 1.23%, indicating ongoing resilience in the economy.
- What sectors contributed most to South Korea’s GDP growth this month?
- Manufacturing output and semiconductor exports were the primary contributors, while construction posted a slight drag.
South Korea’s GDP growth remains steady, with resilience in key sectors despite a modest slowdown this month.
Updated 3/10/26
This has been drafted with AI assistance and then thoroughly reviewed, refined, and approved by our human editorial team to ensure accuracy, and originality.
- Sigmanomics Economic Database, “KR GDP Growth Rate YoY,” accessed March 10, 2026.
- Bank of Korea, “National Accounts: GDP Growth Rate,” official releases, 2024–2026.
February’s GDP growth rate of 1.6% compares to January’s 1.8% and a 12-month average of 1.23%. The latest figure marks a slight pullback after two months of acceleration. The trend since April 2025 shows a steady climb from negative territory, with the economy regaining its footing in the second half of 2025.
Compared to the same month last year, the current reading is up 0.4 percentage points from March 2025’s 1.2%. The pace remains moderate, with no signs of overheating or sharp contraction.