Seoul: The gross regional domestic product (GRDP) in South Korea experienced a modest 1 percent increase in 2025 compared to the previous year, as reported by government data on Monday. This growth comes amidst a slowdown in manufacturing and a significant drop in construction activities.

According to Yonhap News Agency, the Ministry of Data and Statistics stated that the regional economy had previously expanded at rates of 4.5 percent in 2021, 2.7 percent in 2022, and 1.6 percent in 2023. A slight rebound was noted in 2024 with a growth rate of 2 percent, followed by a decline in 2025.

The mining and manufacturing industries experienced a 2 percent growth in 2025, a decrease from the 4.2 percent growth seen in the previous year. While sectors like semiconductors, automobiles, and shipbuilding enjoyed strong export demand, the production of certain items, particularly ships, saw a significant decrease.

The construction sector faced a 9.3 percent contraction, with the most severe impact observed in the southwestern Honam region, which experienced a 14 percent decline. The wider Seoul area, however, showed a 1.9 percent GRDP growth, supported by steady performance in services, mining, and manufacturing sectors.

In contrast, the Honam region's GRDP fell by 0.7 percent, primarily due to the drop in construction. Meanwhile, the southeastern city of Daegu and North Gyeongsang Province saw no change in their GRDP.