South Korea's economy grew 1.0 percent from the previous quarter and 3.7 percent from a year earlier in the third quarter, putting annual growth near 4 percent within reach. Computer, electronic and optical products accounted for about 60 percent of year-on-year growth, with semiconductors alone contributing roughly half.
The boom has yet to translate into equally broad gains from artificial intelligence. About 51.8 percent of Korean workers used generative AI for work in 2025 and saved an average 3.8 percent of working time, implying a potential productivity gain of around 1 percent. Bank of Korea research, however, found no clear relationship between time saved and actual output growth.
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