On Tuesday, the International Monetary Fund revised Korea's 2017 growth forecast to three percent, zero.three percentage points higher from its previous estimate in April.
In its latest World Economic Outlook report, the IMF also adjusted the country's growth outlook for next year to three percent, from the previous two.eight percent.
The financial body cited export-driven growth, on the back of a recovery in global trade and rising demand from China as a key factor in its upgraded forecast.
Indeed, Korean exports have been growing steadily in recent months, with outbound shipments in September tallied at 55.one billion U.S. dollars, soaring 35 percent on-year and setting an all-time monthly high.
IMF Managing Director Christine Lagarde had foreshadowed the move when she visited Seoul last month, expressing a favorable view of the economy despite geopolitical risks emanating from North Korea.
"We of course discussed as well the particular prospects of the Korean economy of which the forecast in our view is 3 percent for this year and probably 3 percent for next year as well."
The IMF's latest forecast is on par with projections from Korea's finance ministry but more optimistic than views from the central bank and other local institutions.
As of July, the Bank of Korea had expected the country's economy to expand two.eight percent this year, while private think tank Hyundai Research Institute, is predicting two.seven percent.
The IMF cautioned however, that uncertainties over regulatory and fiscal policies in the U.S., Brexit negotiations, and geopolitical tensions, could pose serious risks to the global economy.
Yu Joonhee, Arirang News.