Why did South Korea's economy slow down in Q4 2025?

Economic growth slowed due to weakening domestic demand as fiscal stimulus effects dissipated.

What was the trade agreement between South Korea and the U.S. in November 2025?

The agreement involved $150 billion in Korean investment for U.S. shipbuilding and $200 billion in other pledges, with reduced U.S. tariffs on Korean auto parts.

What was South Korea's GDP growth rate in the last quarter of 2025?

South Korea's GDP contracted by 0.3% on a quarterly basis in the last quarter of 2025.

Home / Business and Economy / South Korea's economy cools: Q4 growth misses forecasts

South Korea's economy cools: Q4 growth misses forecasts

22 Jan

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Summary

Economy grew 1.5% year-on-year in Q4 2025, below expectations.
Quarterly GDP contracted 0.3%, a sharp slowdown from Q3.
Trade deal included $350 billion in Korean investment pledges.

South Korea's economy cools: Q4 growth misses forecasts

South Korea's economic expansion decelerated in the final three months of 2025, with yearly growth reaching 1.5%, falling short of projections. This slowdown was primarily driven by weakening domestic demand as the impact of prior fiscal stimulus measures diminished.

Gross domestic product experienced a contraction of 0.3% on a quarterly basis. This contrasts sharply with the 1.3% growth recorded in the third quarter of 2025 and was below economists' expectations of a 0.1% increase.

A trade agreement was reached in November 2025 between South Korean President Lee Jae Myung and U.S. President Donald Trump. This accord involves $150 billion for U.S. shipbuilding investment and an additional $200 billion in investment pledges from South Korea.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.