South Korea economy at a glance

Latest figures for South Korea: inflation, growth, interest rates, jobs, bond yields, debt and taxes. Updated 6 November 2026. Open South Korea on the interactive map →

Key figures

Indicator	Latest	Period	Previous
Inflation (consumer prices, year on year)	2.8%	October 2026	2.9% September 2026
Core inflation (excluding food and energy)	2.8%	October 2026	2.7% September 2026
Real GDP growth (year on year)	3.4%	Q3 2026	3.7% Q2 2026
Policy rate (Bank of Korea)	3.00%	November 2026	3.00% October 2026
Unemployment rate	2.6%	September 2026	2.7% August 2026
10-year government bond yield	4.21%	October 2026	4.45% September 2026
Manufacturing PMI (S&P Global South Korea Manufacturing PMI)	51.3	October 2026	53.9 September 2026
Retail sales (year on year)	−0.4%	September 2026	−0.1% August 2026
Industrial production (year on year)	1.1%	September 2026	2.3% August 2026
Stock market (KOSPI)	5,060	November 2026	+28.9% over 12 months

Questions and answers

What is the inflation rate in South Korea?

South Korea's annual inflation rate was 2.8% in October 2026, down from 2.9% in September 2026.

What is the interest rate in South Korea?

The Bank of Korea base rate is 3.00% (as of November 2026). The next rate decision is due on 26 November 2026.

How fast is South Korea's economy growing?

South Korea's real GDP grew 3.4% year on year in Q3 2026. The IMF's October 2026 World Economic Outlook forecasts growth of 3.3% in 2026 and 2.8% in 2027.

What is the unemployment rate in South Korea?

South Korea's unemployment rate was 2.6% in September 2026, down from 2.7% in August 2026.

What is South Korea's 10-year government bond yield?

South Korea's 10-year government bond yield averaged 4.21% in October 2026.

How much government debt does South Korea have?

South Korea's government debt is about 52.4% of GDP (latest annual figure), with a budget deficit of 2.3% of GDP.

What is South Korea's credit rating?

South Korea's sovereign credit ratings: S&P AA, Moody's Aa2, Fitch AA-.

What is the VAT rate in South Korea?

South Korea's standard VAT rate is 10% (2026 rules).

What is the corporate tax rate in South Korea?

South Korea's corporate income tax rate is 27.5% (2026 rules).

Who leads South Korea?

South Korea is led by President Lee Jae-myung (head of state and government; Democratic Party), in office since June 2025. Next election: National Assembly election, April 2028.

Outlook

The IMF's October 2026 WEO sees growth jumping to 3.3% in 2026 (from 1.1% in 2025) before easing to 2.8% in 2027, with inflation averaging 2.7% this year. The finance ministry projects about 3%. Upside comes from the memory/AI super-cycle and a record expansionary 2027 budget. Downside risks are a correction in AI-related chip demand (chip stocks slid sharply in mid-October), oil prices staying near USD 110 because of Hormuz disruptions, and further Bank of Korea hikes. Local bond analysts mostly see policy rates peaking around 3.50% by early 2027, which would squeeze indebted households.

Why South Korea matters for the world economy

Korea is the world's swing supplier of memory chips. SK Hynix and Samsung control roughly 80% of high-bandwidth memory and about 60% of DRAM, so Korean output and pricing feed directly into the cost and pace of the global AI build-out, mainly in the US, Taiwan and China. Monthly exports hit a record USD 121bn in September, and Korea's trade data are an early read on global tech demand. As a large crude and LNG importer dependent on the Gulf, Korea also passes the Hormuz energy shock through to petrochemical and shipping supply chains across Asia. The USD 350bn US investment commitment links Korean capital flows and the won to US industrial policy.

Politics

President Lee Jae-myung has run an openly expansionary fiscal line since taking office in June 2025. His record 2027 budget proposal (821 trillion won, +12.8%) puts AI, chip infrastructure and power grids at the centre and still needs parliamentary approval. With inflation above target, Lee said in early September that a rate rise looked unavoidable, and the Bank of Korea has since hiked twice. Seoul is also managing a USD 350bn strategic investment commitment to the US through a new state investment corporation.

System: Presidential republic (unitary).

Economy and taxes

GDP: US$1,870 billion
Population: 51.5 million
Government debt: 52.4% of GDP
Budget balance: −2.3% of GDP
Exports: 45.8% of GDP
Main exports: Semiconductors (memory/HBM; about half of exports in Sept 2026), vehicles and parts, machinery, refined petroleum products, ships, steel, petrochemicals
Top export markets: China (23.4%), United States (17.3%), Vietnam (8.9%), Taiwan (6.9%), Hong Kong (4.9%)
IMF growth forecast: 3.3% in 2026, 2.8% in 2027
IMF inflation forecast: 2.7% in 2026, 2.3% in 2027
Currency: KRW
Freelancer tax: A self-employed person earning the average wage (KRW 56,749,797 a year) pays about 28.3% of it in income tax and social contributions (2026 rules)
Top income tax rate: 49.5%
Gold reserves: 104.4 tonnes (September 2026)
Energy self-sufficiency: 17% (2024)

Recent news

4 November 2026 KOSPI swings wildly after Democrats win control of the US Congress Korea Times
The KOSPI swung from a 3.2% gain to a 4.0% loss during the day before closing 0.6% higher at 5,683.80, as investors weighed what a Democratic Congress means for US tech rules and tax cuts. Foreign investors kept selling Korean shares for a seventh straight month.
3 November 2026 Korean inflation eases to 2.8%, but the BOK expects it to stay near 3% Korea Times (Yonhap)
Consumer prices rose 2.8% from a year earlier in October, down from 2.9%, as farm prices fell 1.7% while petroleum products rose 14.9%. Core inflation was also 2.8%, and the Bank of Korea expects inflation to stay in the high-2% range in November.
2 November 2026 Korean household loans rise again despite tighter rules and higher rates Korea Times (Yonhap)
Household loans at the five biggest banks rose by 2.77trn won in October to 783.6trn won, rebounding after September's first fall in six months. Mortgage lending grew for a seventh straight month, even after the Bank of Korea's rate hikes in July and August.
1 November 2026 Korean exports nearly double in October as chip sales more than triple Korea Times
Exports rose 93.7% from a year earlier to $115.3bn in October, as semiconductor shipments jumped 259% to $56.4bn on AI investment. The trade surplus reached $42.5bn, and January-October exports topped $900bn for the first time, putting a $1tn year within reach.
27 October 2026 Korea's economy grows a surprise 1.0% in the third quarter on booming chip exports investingLive
GDP rose 1.0% q/q and 3.4% y/y, beating the 0.7% forecast, as exports rose 2.3% and equipment investment 4.1%; chips made up about half of growth. Private spending fell 0.2%, its first drop in nearly four years, hit by the stock slump and car-industry strikes.
26 October 2026 KOSPI sinks to a seven-month low as foreigners keep dumping chip stocks UPI
The index closed at 5,469, its lowest since April, as foreigners sold another 695bn won of shares. Doubts about AI profits and fears of US rate hikes have hammered Samsung and SK Hynix, while pension funds and company buybacks are giving the market little support.

Headlines and summaries are compiled daily from the linked reports with AI assistance.