South Korea's gross domestic product gained a seasonally adjusted 0.1 percent in the third quarter of 2012 compared to the previous three months, the Bank of Korea said in Thursday's revised report - marking the slowest rate of increase in 11 quarters.

The headline figure is down from the 0.2 percent growth in the October 26 preliminary reading, and it also slows from the 0.3 percent increase in the second quarter.

Real gross national income added 0.5 percent on quarter, while nominal gross national income fell 0.4 percent.

On the production side, manufacturing shed 0.4 percent on declines in sub-sectors such as transport equipment, precision instruments and non-metallic minerals, the bank said.

Construction climbed 2.8 percent, centering on civil engineering. Services added 0.1 percent, with gains for instance in wholesale and retail trade, restaurants and hotels and financial intermediation and despite declines in education and real estate and renting, the bank said.

On the expenditure side, private consumption gained 0.7 percent, as expenditures on durables such as mobile phones and non-durables such as electricity, gas and other fuels increased.

Facilities investment dipped 4.8 percent on losses in machinery including semiconductor manufacturing equipment and transport equipment including automobiles.

Construction investment added 0.1 percent, as investment in civil engineering expanded. Exports gained 2.8 percent on quarter, as those of petroleum products and of wireless telecommunication devices increased, the bank said.

On a yearly basis, GDP was up 1.5 percent versus the preliminary read for a 1.6 percent gain after rising 2.3 percent in the previous three months.

On the production side, the manufacturing sector gained 1.1 percent on year, centering on petroleum and chemical products and electrical and electronic equipment. Construction shed 1.8 percent, due to the sluggishness in building construction and civil engineering. Services expanded by 2.4 percent.

On the expenditure side, private consumption climbed 1.6 percent on year, led by expenditures on durables such as mobile phones and on non-durables such as electricity, gas and other fuels.

Facilities investment dropped 6.5 percent, as investment in semiconductor manufacturing equipment and in automobiles decreased, the bank said. Construction investment fell 0.2 percent, as civil engineering increased slightly but buildings construction was sluggish.

Exports jumped 2.9 percent centering on petroleum products, and imports by 1.1 percent owing to increases for example in imports of crude oil and natural gas.

Nominal gross national income fell 0.4 percent on quarter, owing to a large decrease in net factor income from abroad and despite the small quarter-on-quarter increase in nominal gross domestic product.

Real gross national income expanded 0.5 percent compared to the previous quarter on the back of improvements in the terms of trade. The GDP deflator increased 0.9 percent on year.

The gross saving ratio was 30.1 percent in Q3, down 1.1 percentage points on quarter, as final consumption expenditure increased while gross national disposable income declined.

The gross domestic investment ratio was 26.0 percent, down 1.7 percentage points on quarter, due mostly to a decline in facilities investment.

Upon the release of the data, the Bank of Korea conceded that it was unlikely the country would hit its 2012 forecast growth target of 2.4 percent. The economy is seen expanding 3.2 percent next year.

RTTNews