Key Takeaways: South Korea's GDP Growth Rate YoY held steady at 1.0% in February, matching January's pace and marking a modest rebound from late 2025. The figure remains below the 12-month average, with external demand and manufacturing output as primary drivers.
South Korea GDP Growth Rate YoY Holds at 1.0% in February
South Korea's year-over-year GDP growth rate for February 2026 came in at 1.0%, unchanged from January. This reading reflects a stabilization after a period of subdued expansion in the second half of 2025. The latest data, released March 6, underscores persistent headwinds and a cautious recovery trajectory for Asia's fourth-largest economy.[1]
Big-Picture Snapshot
Drivers this month
- Manufacturing output: +0.22pp
- Semiconductor exports: +0.15pp
- Private consumption: +0.09pp
- Construction activity: -0.05pp
Policy pulse
The 1.0% YoY GDP growth rate remains below the Bank of Korea's medium-term target of 2.0%, keeping policymakers on alert for further signs of slack in domestic demand.[1]Market lens
Markets greeted the steady print with muted moves in the won and local equities. Investors appear to be weighing the ongoing recovery in exports against persistent weakness in consumer spending and construction.Foundational Indicators
Drivers this month
- Export growth: +0.13pp
- Household spending: +0.07pp
- Business investment: flat
- Public sector demand: +0.03pp
Policy pulse
The GDP growth rate has now matched or exceeded 0.9% for four consecutive months, but remains below the 2024 average of 1.2%.[1]Market lens
Bond yields remained stable after the release. The lack of acceleration in headline growth has kept expectations for monetary policy unchanged, with investors watching for further signals from upcoming industrial and trade data.Chart Dynamics
What This Chart Tells Us: The chart illustrates a fragile but persistent recovery in South Korea's GDP growth rate over the past six months. While the pace remains subdued compared to historical averages, the upward trend since August signals incremental progress, with the economy regaining lost ground after a mid-2025 slowdown.
Forward Outlook
Scenario probabilities
- Bullish (growth accelerates to 1.5%+ in Q2): 20–30%
- Base (growth holds near 1.0%): 50–60%
- Bearish (growth slips below 0.7%): 15–25%
Upside and downside risks
Upside risks include a rebound in global semiconductor demand and stronger-than-expected fiscal support. Downside risks stem from weak consumer sentiment, property market softness, and potential trade disruptions.Data source and methodology
Figures are sourced from the Sigmanomics database and official South Korean government releases, using chain-weighted real GDP calculations on a year-over-year basis.[1]Closing Thoughts
Market lens
Equity and currency markets showed little reaction to the February GDP data. The steady reading aligns with consensus and signals that investors are awaiting more decisive signals from upcoming trade and industrial output releases.Policy pulse
The Bank of Korea is likely to maintain its current stance, with the growth rate still below target and inflation pressures contained. Policymakers remain focused on supporting domestic demand while monitoring external risks.Key Markets Reacting to GDP Growth Rate YoY
South Korea's GDP growth data can influence global equity, currency, and crypto markets, especially those with exposure to Asian trade and technology supply chains. The following symbols, verified from Sigmanomics, have shown sensitivity to shifts in South Korean macroeconomic momentum:
- AAPL — Apple relies on South Korean suppliers for semiconductors and displays; GDP trends affect supply chain sentiment.
- USDJPY — The yen often reacts to shifts in Asian growth, with South Korean data influencing regional currency flows.
- BTCUSD — Crypto trading volumes in Korea can spike on macroeconomic surprises, impacting global bitcoin liquidity.
Indicator vs. Symbol Table (2020–2026):
*2026 data as of February
| Year | SK GDP YoY (%) | AAPL (YoY %) |
|---|---|---|
| 2020 | -0.9 | 80.7 |
| 2021 | 4.1 | 34.0 |
| 2022 | 2.6 | -26.8 |
| 2023 | 1.4 | 48.2 |
| 2024 | 1.2 | 48.6 |
| 2025 | 0.9 | 49.0 |
| 2026* | 1.0 | 12.1 |
FAQ
- What is the latest South Korea GDP Growth Rate YoY?
- The most recent figure is 1.0% for February 2026, unchanged from January and slightly above late-2025 levels.
- How does the current GDP growth compare to the 12-month average?
- February's 1.0% matches the 12-month average, reflecting a modest but persistent recovery from the mid-2025 trough.
- What factors are driving South Korea's GDP growth in early 2026?
- Key contributors include manufacturing output, semiconductor exports, and a gradual improvement in private consumption.
South Korea's GDP growth rate steadied at 1.0% in February, signaling cautious optimism amid ongoing global and domestic challenges.
Updated 3/6/26
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 database, South Korea GDP Growth Rate YoY, official government releases, accessed March 6, 2026.
The last six months show a gradual improvement: August at 0.4%, September at 0.6%, November and December at 0.9%, and both January and February at 1.0%. This sequence highlights the economy's resilience amid external headwinds and domestic adjustments.