South Korea’s economy books major growth after 2002

Growth of various sectors

The manufacturing sector saw a growth rate of 8.7%, "mainly due to the growth in cars and [information technology] manufacturing such as semiconductors and electronic products," the central bank said in a statement.

Export of goods increased by 5.1, while imports climbed 8.4%. Services mounted by a 0.6%, due to transport, storage, wholesale and retail trade sectors, the central bank said.

Private consumption grew by 1.4% due to "large increase in expenditures on services such as health, recreation and culture, while purchases of automobiles maintained a high growth rate."

All in all, the sectors grew tremendously except for the construction sector, which saw a decline of 0.5% in the third quarter from the previous quarter.

"There was improvement in inventory investment that contributed to both consumer spending and facility investment continuing their upward gains," the central bank said.

State of stocks and holdings

South Korea’s economy is on a boom as many companies post record breaking net profits. Hyundai, South Korea’s largest automaker, posted record third-quarter net income of 979.2 billion won ($827 million).

Hynix Semiconductor Inc., the world’s second-largest computer- memory chipmaker, reported its first quarterly profit in two years.
Kospi index which holds the nation’s shares together climbed 1.4 percent at in Seoul, expanding at a 48 percent gain.

Kia Motors Corp., South Korea’s second-biggest automaker, posted record profit in the three months as demand for cars boosted. Samsung Electronics Co., Asia’s biggest maker of chips, flat screens and mobile phones, said that its profit doubled this quarter.

In spite of the high growth rates, the Bank of Korea is unlikely to raise rates this year, given uncertainty about the growth outlook, economists said. It kept the key interest rate steady at a record low of 2 percent in October.