South Korea's per capita income seen topping $40,000 for first time in 12 years, minister says

Deputy Prime Minister and Finance Minister Lee Hyung-il said Tuesday that South Korea's economic growth rate this year is increasingly likely to reach the mid-3 percent range, and that per capita national income is on track to surpass $40,000 for the first time in 12 years — since it first crossed the $30,000 threshold in 2014.

Lee made the remarks Tuesday in a post on social media platform X, formerly Twitter, noting that the Bank of Korea had reported real GDP growth of 1.0 percent quarter-on-quarter and 3.4 percent year-on-year in the third quarter, marking three consecutive quarters of expansion.

The third-quarter growth rate far exceeded the Bank of Korea's earlier forecast of 0.3 percent, driven by strong semiconductor exports and increased facility investment.

Exports rose 2.3 percent, led by semiconductors and machinery and electrical equipment, while facility investment grew 4.1 percent, centered on semiconductor manufacturing equipment. Private consumption, however, contracted 0.2 percent, indicating that the growth momentum has yet to spread broadly to household spending. Even if fourth-quarter growth comes in flat against the previous quarter, the annual growth rate is estimated to reach 3.6 percent.

Lee said it was also encouraging that small and medium-sized enterprise exports are on track to hit a record high this year, calling it "an achievement built together by our businesses and people."

"We will now extend these gains into the lives of the people," he added. "We will achieve growth for all through a virtuous cycle in which growth leads to more jobs and income, and higher income supports consumption, which in turn drives growth again."