Moderate expansion in 4Q on credit woes

Engine of growth: Vehicles bound for export are driven into a ship at a port in Ulsan. Exports in real terms increased 2.6%, as facilities investment advanced 3%, underscoring the recovery of the manufacturing engine at the heart of the economy. — Bloomberg

SEOUL: South Korea’s simmering credit risks weighed on construction activity last quarter, holding economic growth in check even as exports maintained momentum and adding to concerns for President Yoon Suk Yeol ahead of parliamentary elections crucial to his policy initiatives.

Gross domestic product expanded 0.6% in the three months through December from the previous quarter, the Bank of Korea (BoK) said.