Galaxy Note recall hits South Korea’s 3Q growth

SEOUL, South Korea – South Korea’s third-quarter economic growth has slipped to its lowest level in more than a year, with Samsung’s Galaxy Note 7 recall having an impact.

The country’s central bank said Tuesday that Asia’s fourth-largest economy expanded 2.7 per cent during the July-September quarter over a year earlier, the slowest pace since the second quarter of 2015.

From the previous quarter, the economy eked out a 0.7 per cent growth. On a quarter-to-quarter basis, South Korea’s economy grew less than 1 per cent in the past year.

The Bank of Korea said the manufacturing sector declined because handset sales slumped after the Galaxy Note 7 recall.

Samsung Electronics recalled 2.5 million smartphones in September over battery defects. It stopped production earlier this month when its replacements for recalled phones also caught fire.