Korean growth at seven-year high

South Korea's economy has staged a turnaround in 2009

South Korea's economy grew between July and September at its fastest quarterly rate since the first quarter of 2002.

The Bank of Korea said that gross domestic product (GDP) grew by 2.9% in the third quarter compared with the previous three months.

It grew 0.6% compared with the same period last year, ending a run of three consecutive quarters of negative year-on-year growth.

GDP measures the total value of goods and services produced by an economy.

Shares rise

The benchmark Kospi stock market index in Seoul closed up 1% at 1,657.1 following the news.

The index has risen 47% this year, having dropped by 41% in 2008.

Investors have cheered the economy's rapid turnaround.

The economy contracted by 5.1% in the last three months of 2008, but grew 0.1% in the first three months of 2009 and 2.6% in the following quarter.