South Korea's Economy Contracts 0.3% in Q4 2025, Largest Decline in Three Years

South Korea's economy contracted by 0.3% in the fourth quarter of 2025, marking the steepest decline since the fourth quarter of 2022. This downturn defied expectations from a Reuters poll that had forecast a modest 0.1% growth. The contraction was primarily driven by a 3.9% fall in construction investment and a 2.1% decrease in exports, notably affecting the automotive and machinery sectors. Facility investment also saw a reduction of 1.8%, while private consumption showed a slight increase of 0.3%.