Gyeonggi, Ulsan Lead Growth; Jeollanam, Jeju Suffer from Construction Slump
Due to strong export industries such as semiconductors and automobiles, the real gross regional domestic product (GRDP) growth rate for the third quarter of this year (July-September), compared to the same period last year, was recorded at 1.9%.
According to the "2025 Third Quarter Real Gross Regional Domestic Product" released by the Ministry of Data and Statistics on the 26th, the GRDP growth rate for the third quarter of this year was 1.9%, breaking away from two consecutive quarters of 0% growth in the first quarter (0.0%) and second quarter (0.6%) and rising to the mid-1% range. The strong export performance centered on semiconductors and automobiles significantly contributed to the growth rate of mining and manufacturing, which rose from 2.2% in the second quarter to 3.5% in the third quarter. The service industry's growth rate also increased from 1.2% to 2.2% due to the recovery in consumer sentiment and the effects of government consumption coupons.
Regions with concentrated semiconductor and automobile production facilities, such as Gyeonggi (3.9%) and Ulsan (3.7%), showed high growth rates in the third quarter. This was followed by Seoul (3.6%), Chungcheongbuk (3.4%), Gangwon (1.2%), Daegu (1.1%), and others. In contrast, six regions, including Jeollanam (-3.6%), Jeju (-3.3%), Incheon (-1.8%), Daejeon (-0.6%), Gyeongsangnam (-0.5%), and Sejong Special Self-Governing City (-0.3%), experienced negative growth in their regional GDP for the third quarter.
The decrease in regional GDP in regions such as Jeollanam and Jeju was due to the sluggish construction industry. The growth rate of the construction industry in Jeollanam was -16.6%, and in Jeju, it was -17.1%. The national construction industry growth rate was -7.3%, marking three consecutive quarters of negative growth since the first quarter of this year. However, unlike the double-digit negative growth in the first quarter (-12.3%) and second quarter (-10.7%), the negative growth rate narrowed to a single digit.
The service industry's growth rate, which was 0.7% in the first quarter, improved for two consecutive quarters to 1.2% in the second quarter and 2.2% in the third quarter. The accommodation and food services industry, which had contracted by -2.2% in the second quarter, turned positive with a 1.6% growth in the third quarter, contributing to this improvement.