AI chip boom drives South Korea's GDP to 1% growth in Q3, triple the central bank's forecast

South Korea's economy grew 1.0% in the third quarter from the previous quarter, according to Bank of Korea advance data released Tuesday, beating the central bank's August forecast of 0.3% and a 0.7% Reuters poll consensus. The BOK estimates semiconductors drove about half of the growth: exports rose 2.3% and facilities investment jumped 4.1%, led by chipmaking equipment, while real gross domestic income surged 18.8% year on year on higher chip prices. Private consumption fell 0.2%, its first drop in nearly four years. Exports are on track to top $1 trillion this year, which would make South Korea the fourth country to reach that mark after the US, China and Germany.