Koo Yoonchul: "Q3 GDP Is the New Administration's Report Card... Consumption Recovers and Investment Increases"

Ministry of Economy and Finance Hints at Raising Annual Growth Forecast from 0.9% to the 1% Range

Koo Yoonchul, Deputy Prime Minister for Economy and Minister of Economy and Finance, is delivering the opening remarks at the "Public Institution AI Transformation Workshop" held at Nurikkum Square in Mapo-gu, Seoul on October 28, 2025. Photo by Yoon Dongju

Koo Yoonchul, Deputy Prime Minister for Economy and Minister of Economy and Finance, stated on the 28th, "The GDP for the third quarter is the first true and complete economic report card of the new administration."

Deputy Prime Minister Koo made these remarks after attending the "Public Institution Artificial Intelligence (AI) Transformation Workshop" held at Nurikkum Square in Sangam-dong, Seoul, on the same day.

He explained, "The GDP growth rate was -0.2% in the first quarter of this year, 0.7% in the second quarter, and 1.2% in the third quarter, which is very meaningful. Consumption has recovered, investment has increased, and, in particular, the decline in the construction sector has significantly narrowed." He also assessed that exports are improving.

Koo emphasized, "The results reflect the government's efforts through the first and second supplementary budgets. While we continue to stimulate domestic demand, we must also pursue an AI transformation to raise Korea's potential growth rate in the mid- to long-term."

He added, "If public institutions use AI for dam management, civil complaint processing, and safety management, the productivity of the public sector will improve and public services will be enhanced. AI is the best tool for creating a virtuous cycle in Korea, and if public institutions undergo an AI transformation, Korea's productivity and GDP will increase as a result."

Regarding the possibility of achieving an annual growth rate of 1% this year, he said, "We will do our utmost to achieve this goal."

The Ministry of Economy and Finance held an economic trends briefing at the Sejong Government Complex on the same day, stating, "The third quarter GDP is definitely much better than our internal projections," and hinted at the possibility of raising this year’s economic growth forecast from the previous 0.9% to the 1% range.

Kim Jaehun, Director of Economic Policy at the Ministry of Economy and Finance, said, "There are uncertainties regarding the U.S.-China and Korea-U.S. tariff negotiations in the annual outlook, but compared to previous forecasts, the likelihood of achieving 1% growth has increased." The government’s overall assessment is that while exports performed well, domestic demand drove growth, and fiscal stimulus helped the private sector lead the recovery.

According to the Bank of Korea’s announcement on the same day, the preliminary real GDP growth rate for the third quarter (compared to the previous quarter) was 1.2%, the highest in six quarters since the first quarter of last year. In July, the government had sharply lowered its growth forecast for this year from 2.2% to 0.9% in its economic policy direction.