South Korea's Economy Contracts 0.3% in Q4 2025 Amid Weak Domestic Demand
South Korea's economy contracted by 0.3% in Q4 2025, leading to a full-year growth rate of 1%, primarily due to weak domestic demand and a 3.9% drop in construction investment. While private consumption and government spending saw modest increases, exports fell by 2.1%. Additionally, a study revealed strong public support for hydrogen fuel cell heavy-duty trucks, with the government targeting 30,000 trucks by 2040 to reduce emissions significantly.
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South Korea's economy contracted by 0.3% in Q4 2025, resulting in full-year growth of 1%. The Bank of Korea reported a decline in GDP due to weak domestic demand and construction investment. Private consumption rose by 0.3%, while government spending increased by 0.6%.
Construction investment fell by 3.9% and exports dropped by 2.1%. Real gross domestic income rose 0.8% in Q4. A separate study from SEOULTECH showed strong public support for hydrogen fuel cell heavy-duty trucks, with an average willingness to pay of KRW 3,121 per household annually. The government aims to have 30,000 hydrogen trucks by 2040 to cut emissions by about 8.74 million tons.
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