S. Korea Economy Up 10% Despite Unrest in Quarter

Despite a record 3,400 strikes during the period, South Korea’s economy expanded by 10.5% in real terms from July to September, the Bank of Korea announced Thursday.

Without the labor strife, the third-quarter growth might have reached 15%, compared to the same period a year earlier, bank officials said.

The preliminary calculation of the gross national product showed growth of 13.5% for the first nine months, after subtracting inflation. Last year, the country’s GNP grew 12.5% in real terms.

Labor strife swept South Korean industries beginning in July after Roh Tae Woo, the ruling Democratic Justice Party’s nominee in the Dec. 16 presidential election, promised to transform the nation from authoritarian to democratic government. Officials announced that billions of dollars worth of production were lost. Calm returned to labor-management relations in late September.

Only the mining industry showed an absolute decline; production fell 8.4%.

Commodity exports increased 21.9%; manufacturing expanded by 11.9%, and electricity and gas consumption climbed 15.3%. The key indicator of future growth--investment in new plant facilities--rose 17.9% during the quarter, compared to the same period a year earlier, the bank said.