2025 Korea’s Economy Wrap-Up: 2.1% Inflation, $700 Billion Export Record, Stock Market Hits New Highs

Consumer Prices Rise at Lowest Rate in 5 Years — Just 2.1%

According to the Korea Statistics Office’s report released on the 31st, the annual consumer price inflation for 2025 came in at just 2.1%. This is the lowest since 2020, when inflation was only 0.5%, during the peak of COVID-19. In December, prices increased by 2.3%, mainly driven by exchange rate effects causing sharp rises in fuel and agricultural product costs.

Samsung Electronics and SK Hynix Reach Record Highs, Stock Market Closes Strong

On the 30th, Samsung Electronics closed at 119,900 won (up 0.33%), and SK Hynix finished at 651,000 won (up 1.72%), both hitting all-time highs. Samsung’s stock has surged by 124.5% since the start of the year, while SK Hynix soared by 279.09%, leading the KOSPI index higher. Although the KOSPI fell slightly by 0.15% to close at 4,214.17, it still boasts a 75% return since January.

Exports Break $700 Billion for the First Time, Concerns Over Semiconductor Dependency

This year, Korea’s exports surpassed $700 billion for the first time in history. While ranking sixth globally, the heavy reliance on semiconductors raises some economic concerns.

• Declines in oil products, petrochemicals, displays, and secondary batteries — double-digit drops
• Secondary batteries: Weak EV demand led to canceled supply contracts
• Industry analysts forecast: US tariffs could reduce exports by 0.5% in 2026, with GDP growth around 1.9%

Continued dependence on semiconductor cycles has highlighted economic imbalances that need addressing.

Tax Revenue Surpasses 38 Trillion Won — Driven by Foreign Investors and Semiconductors

According to the Ministry of Economy and Finance, tax revenues from January to November totaled 353.6 trillion won, up 37.9 trillion won (12%) from last year. Strong corporate and income taxes, boosted by foreign investors (“Seohak Gaemi”) and semiconductor industry growth, played a big role. The full-year tax collection is expected to meet government targets.

Other Key Economic Indicators: Currency Stabilization and Trade Surplus

Foreign exchange authorities sold a net $1.7 billion in the third quarter to stabilize the won. Meanwhile, Korea’s current account remains in a healthy surplus, accounting for about 5% of GDP in 2025, demonstrating solid economic fundamentals.

• Reduced growth gap between Korea and the US: Both expected to grow around 1.9% in 2026
• Despite record-high exchange rates, the “collapse theory” is rebutted: Trade surplus remains strong

These indicators show Korea’s economy staying resilient in 2025 and will likely influence policy decisions for the upcoming year.