Anchor: The South Korean economy grew at a slower pace of zero-point-four percent in the third quarter, slipping from one percent posted three months earlier. Appearing at a parliamentary audit, the Bank of Korea chief said posting two percent growth will be a challenge this year.
Choi You Sun has the details.

Report: The South Korean economy grew just zero-point-four percent in the third quarter from the April to June period, pulled down by weak consumption and investment.

The preliminary data from the Bank of Korea(BOK) on Thursday marks a slowdown from a one percent on-quarter expansion in the second quarter, which followed a zero-point-four percent contraction posted in the January to March period, a decade low.

Construction investments sharply declined five-point-two percent, while facility investments were up zero-point-five percent amid a slump in recovery.

Exports of semiconductors and automobiles contributed to growth, gaining four-point-one percent, higher compared to a two-percent expansion from the previous quarter.

Private spending increased zero-point-one percent, while government spending, which led growth in the second quarter with a two-point-two-percent gain, rose one-point-two percent.

The BOK said annual growth in the two-percent range will be possible only if the economy expands by one percent in the fourth quarter.

The central bank explained growth will depend on alleviating uncertainties from the U.S.-China trade war and the recovery of the global semiconductor industry, noting a recovery in exports and local spending will be key to growth in the fourth quarter.

Appearing at a parliamentary audit on Thursday, BOK Governor Lee Ju-yeol expressed concerns, saying it may not be easy to achieve two percent growth this year.

While Lee called for an active fiscal policy to help raise the country's growth potential, Finance Minister Hong Nam-ki, also at the audit, said the government will do all that it can to reach the two-percent target, such as reinforcing policies aimed at boosting the country's exports.

Since the industrialization of the 1960s, South Korea has posted annual growth below two percent only three times, all following serious global events such as the 1979 oil crisis, the 1997 Asian financial crisis and the 2008 global financial crisis.
Choi You Sun, KBS World Radio News.