HRI raises Korea’s 2025 growth forecast to 1%

(Yonhap)

The Hyundai Research Institute (HRI) said on Sunday that South Korea’s economy is expected to expand 1 percent in 2025, raising its growth outlook by 0.3 percentage points from May on stronger fiscal support and resilient exports.

The think tank said government stimulus measures, including a second supplementary budget, had improved business and consumer sentiment in the second half of the year. It also noted that exports remain solid despite uncertainty stemming from U.S. tariff policies.

The revised outlook tops the Ministry of Economy and Finance’s 0.9 percent projection and the Bank of Korea’s 0.8 percent forecast issued in August 2025. The latest forecast from a private think tank marks a rare shift toward optimism, given sluggish growth expectations across official bodies.