South Korea's gross domestic product expanded a seasonally adjusted 1.1 percent in the third quarter of 2013 compared to the previous three months, the Bank of Korea said in Friday's advance estimate.

The headline figure beat forecasts for an increase of 0.5 percent and was unchanged from the rate of increase in the second quarter.

On the expenditure side, private consumption increased by 1.1 percent as expenditures on nondurable goods and services increased, the bank noted.

Construction investment added 2.7 percent, with increases in both building construction and civil engineering. Facilities investment rose by 1.2 percent, as investment in machinery expanded.

Exports shed 0.9 percent, centering on exports of general machinery and petrochemical products. Imports gained 0.1 percent due to an increase in royalties payments for example on intellectual property, the bank said.

On the production side, agriculture, forestry and fishing grew by 2.0 percent, centering on rice and hogs. Manufacturing jumped 1.6 percent, with increased production of electrical & electronic equipment, petrochemical products, food and beverages and furniture.

Electricity, gas and water supply climbed 1.0 percent, led by an increase in electricity sales, the bank said, while construction spiked 1.2 percent, centering on civil engineering.

Services collected 0.7 percent, as gains in health and social work, wholesale and retail trade, restaurants and hotels, financial intermediation, and recreational, cultural and sporting offset declines in real estate and renting and education.

On a yearly basis, GDP jumped 3.3 percent - also topping forecasts for an increase of 2.8 percent and up from 2.3 percent in the previous three months.

Real gross domestic income was up 0.4 percent on quarter and 4.2 percent on year.

RTTNews