South Korea’s economy grew much faster than expected in the July-September quarter, under the impact of the high demand for chips used in artificial intelligence (IA).

According to preliminary estimates released by the Bank of Korea on Tuesday, the Bruto Interior Product ( GDP grew by 1 percent on a quarterly basis or 3.4 percent compared to the same period last year.

In August, the Bank of Korea had predicted that GDP would increase by 0.3 per cent in the third quarter, foreign media write, sends out Telegrafi.

According to the central bank, exports ) that make up about 45 percent of South Korea’s GDP increased by 2.3 percent compared to the previous quarter, promoted by semidisplacents, machinery, and electrical equipment.

These recent results put the South Korean economy on track to achieve its greater economic expansion in more than a decade.

South Korean Finance Minister Lee Hyoung-il declared earlier this month that he expects the increase to reach 3,450.6 percent in 2026; this would constitute the strongest performance since 2011, excluding the period of the pandemic COVID-19.

In 2025 the South Korean economy grew by 1 percent, marking the slower expansion since the pandemic.

The fourth largest economy in Asia has benefited from artificial intelligence momentum, at a time when memory chips are observed on the global market.

In South Korea there are two of the three largest memory chip producers, the SK Hyx and Samsung Electronics.

Together, these companies control about 80 percent of the global memory market CHAhigh-bandidth memorith and 60 percent of the DRAM market.

According to the Korean Customs Service, South Korean exports in September rose by 83.5 percent compared to last year, reaching $120.9 billion, where chips made up almost half the total volume of remittances. /Telegraphy/