Revised estimates for South Korean GDP show the economy expanded 0.1 percent on the quarter in the three months to December, unchanged from the advance estimate and also confirming growth was steady after the 0.1 percent increase recorded in the three months to September. GDP rose 1.2 percent on the year in the three months to December, also matching the advance estimate and down from 1.5 percent in the three months to September.

At their most recent policy meeting last month, officials at the Bank of Korea lowered policy rates for the third time in their last four meetings, cutting the rate by 25 basis points from 3.00 percent to 2.75 percent. Officials noted then that they were less confident about the growth outlook, partly reflecting their concerns about US trade policy, revising down their forecast for annual GDP growth this year from 1.9 percent to 1.5 percent. They concluded that the weaker growth outlook warranted another rate cut in order to"mitigate downward pressure on the economy and also signalled that additional policy loosening will be considered in upcoming meetings.

Forecasters expect the same modest 1.2 percent growth on year in Q4 as in Q3 as the Bank of Korea looks to boost the economy at the start of 2025.

GDP data are a comprehensive measure of South Korea’s overall production and consumption of goods and services. GDP serves as one of the primary measures of overall economic well-being. GDP calculates the total market value of goods and services produced in South Korea within a given period after deducting the cost of goods and services used up in the process of production. Therefore, GDP excludes intermediate goods and services and considers final aggregates only.

Gross domestic product (GDP) can be measured using three approaches, namely the production, income and expenditure approaches. The production measure of GDP is derived from firm level data and estimates the value added by all producing industries in the South Korea economy. The income measure of GDP is derived from earnings data and estimates how the income earned from these producing industries is then distributed throughout the economy as returns to labor, capital and government. The expenditure measure of GDP is derived from data estimating spending on goods and services by final end users and includes consumption, investment and exports minus the value of imports.

GDP is the all-inclusive measure of economic activity. Investors need to closely track the economy because it usually dictates how investments will perform. Investors in the stock market like to see healthy economic growth because robust business activity translates to higher corporate profits. Bond investors are more highly sensitive to inflation and robust economic activity could potentially pave the road to inflation. By tracking economic data such as GDP, investors will know what the economic backdrop is for these markets and their portfolios. The GDP report contains a treasure-trove of information which not only paints an image of the overall economy, but tells investors about important trends within the big picture. GDP components such as consumer spending, business and residential investment, and price (inflation) indexes illuminate the economy's undercurrents, which can translate to investment opportunities and guidance in managing a portfolio.