South Korea blames weak GDP on Samsung recall, strikes
Gross domestic product grew by a seasonally adjusted 0.7 percent in third quarter
South Korea’s central bank said on Tuesday the weakness seen in third quarter GDP growth data was largely due to the scrapping of Samsung Electronic Co Ltd’s Galaxy Note 7 and Hyundai Motor’s strikes.
“When you take away the effects from Samsung and Hyundai, third-quarter growth was considerably better than expected,” said Chung Kyu-il, a director at the Bank of Korea.
Chung added the economic effects of Samsung Elec’s decision to scrap the Note 7 were nearly all reflected in third quarter GDP data.
Gross domestic product grew by a seasonally adjusted 0.7 percent over July-September versus the second quarter, the Bank of Korea estimated, ticking down from a 0.8 percent quarterly rise but faster than 0.5 percent growth in the March quarter.