Seoul: Korea Investment Holdings Co. on Tuesday reported a significant increase in net profit for the September period, rising 133.6 percent on-year to 849.1 billion won. Revenue also saw a slight increase of 0.7 percent, reaching 5.98 trillion won.
According to Yonhap News Agency, the earnings exceeded market expectations, with the average estimate of net profit by analysts standing at 465.2 billion won, as per a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
Meanwhile, South Korea's state-run economic think tank, the Korea Development Institute (KDI), also announced on Tuesday an upward revision in the growth forecast for the domestic economy, now projected at 0.9 percent for 2025. This change comes as a result of improvements in private consumption, marking a 0.1 percentage-point increase from its August forecast.
Furthermore, the KDI stated that the economy is projected to grow 1.8 percent in 2026, which is a 0.2 percentage-point increase from its previous forecast three months ago. The KDI report highlighted the gradual expansion of growth momentum, despite domestic demand being affected by a contraction in construction investment, which is balanced by a recovery in consumer spending.
Despite challenges such as worsening trade conditions due to U.S. tariff policies, exports have managed modest gains, bolstered by strong semiconductor demand. The KDI expects the economy to maintain a gradual recovery, primarily driven by consumption.
The forecast aligns with projections from other major economic institutions. The Bank of Korea anticipates a 0.9 percent growth in 2025 and 1.6 percent in the following year, with a revised outlook expected later this month. Similarly, the International Monetary Fund has projected 0.9 percent economic growth for this year and 1.8 percent for the next year.
Private consumption is expected to grow 1.6 percent next year, up from this year's 1.3 percent expansion. Construction investment is forecasted to rebound with a 2.2 percent growth following a 9.1 percent decline in 2025. However, export growth is anticipated to slow to 1.3 percent next year from 4.1 percent this year, amidst uncertainties over the U.S. tariff scheme.
The KDI report also addressed potential trade uncertainties, particularly regarding the U.S. Supreme Court's pending decision on the Donald Trump administration's reciprocal tariff measures. Additionally, the weakening of the Korean won, which has fallen below 1,450 won per U.S. dollar, poses a key downside risk. If the won remains weak, inflation could surpass the 2 percent target, the institute warned.