2025 Overview of the Korean Economy

Published on July 17, 2025
Published by Economic Analysis Coordination Division

   The Korean economy has experienced stunning growth over the past few decades, becoming the 13th largest economy in the world. However, it has recently come to face a range of complex challenges, such as intensifying uncertainties at home and abroad, prolonged low growth, and structural demographic shifts. Global economic uncertainty is intensifying, caused by changes in US tariff policy and the expansion of protectionism. In the mean time, changes in external and internal environments, including low birth rates, aging population, increased technological competition, and the climate crisis, all require preemptive actions.
   In light of these uncertainties in both the internal and external economicenvironments, this report aims to enhance understanding of the Korean economy, provide objective economic information, and support timely identification of policy agenda.
   This report is composed of three parts and eleven chapters. Part I explains the structure and components of the Korean economy, examining economic cycles and growth from the perspectives of production, distribution, and expenditure. Part II presents a systematic analysis of key economic indicators, such as economic growth rates, inflation, and employment rates, to evaluate Korea's economic status from a range of diverse perspectives. Lastly, Part III explains the current status of Korea's major policies, including production, distribution, finance, and monetary policy, and the challenges in each area. Throughout this report, key economic indicators are thoroughly compared with those of other countries around the world to better illustrate the relative position of the Korean economy on the global stage and offer a reference for future policy direction.