The Korea Composite Stock Price Index (KOSPI) opened lower, falling by more than 1% at one point, before fluctuating and recovering.

Driven by government stimulus measures and exports withstanding tariff pressures, South Korea's economy accelerated its growth in the third quarter, with a stronger-than-expected performance. Preliminary data released by the Bank of Korea on Tuesday showed that third-quarter GDP grew by 1.2% quarter-on-quarter, higher than the market median forecast of 1%; year-on-year growth was 1.7%.

Government spending, private consumption, and equipment investment led the economic growth, largely due to a series of cash handouts to households and other fiscal support. However, construction investment remained sluggish. Despite challenges such as U.S. tariff hikes and global trade uncertainties, exports, which account for over 40% of South Korea's GDP, maintained steady growth. A surge in artificial intelligence (AI)-related demand continued to boost semiconductor shipments.

At its policy meeting last week, the Bank of Korea stated that the economy is expected to meet its August forecasts of 0.9% growth in 2025 and 1.6% growth in 2026, with a 2.0% increase in 2024.

The Asia-Pacific Economic Cooperation (APEC) summit is being held this week in Gyeongju, South Korea. South Korean President Lee Jae-myung will meet with Trump on Wednesday, and officials hope the leaders' summit will help advance South Korea-U.S. trade negotiations. South Korea's current economic growth momentum largely depends on the outcome of negotiations with Washington.

In an interview last Friday, Lee Jae-myung stated that South Korea's $350 billion investment commitment to the United States remains stalled due to disagreements over key details. This means the two countries may not be able to reach a trade agreement before Trump visits South Korea for the summit.

Although Lee Jae-myung and other senior South Korean officials pointed out significant differences with the U.S., Trump told reporters before departing Washington for Asia that the United States is "very close" to reaching a deal with South Korea.