South Korea's Economy Contracts to 3-Year Low in Q4 2025

South Korea's economy shrank in the last three months of 2025, which was a bigger drop than expected.

This was the largest decrease in three years.

The main reasons were less spending on building things and buying equipment, as well as fewer exports.

People did spend a little more money, but not enough to make up for the other losses.

The economy grew a little over the whole year, but not as much as the year before.

The government and the central bank think it will grow a bit more in 2026.