STORY: South Korea's economy unexpectedly shrank in the final quarter of 2025.
It saw the biggest drop in three years, but the global AI boom looks set to improve the outlook.
:: Samsung Electronics
Central bank estimates out Thursday showed gross domestic product decreased 0.3% in the fourth quarter from the preceding three months.
Construction investment was the big drag over the period, while exports also fell.
But analysts say the result was largely payback from the previous quarter's growth of 1.3%-- the fastest in almost four years.
According to the Bank of Korea, Asia's fourth-largest economy grew 1% in 2025, half the rate of the year before.
The government expects stronger growth of 2% this year, while the BOK predicts domestic investment will pick up.
It says more government infrastructure projects are expected, and companies plan to expand semiconductor factories and artificial intelligence investments
On Thursday morning, South Korea's stock benchmark topped 5,000 points for the first time, powered by gains for chipmakers like Samsung Electronics and SK Hynix.
