Q2 Sees Unexpected Growth Boost, KOSPI Recovers 7,000 Threshold

[Anchor]

Driven by semiconductor exports, South Korea's gross domestic product (GDP) recorded an unexpected growth momentum in the second quarter. Real GDI, which indicates the actual purchasing power of citizens, showed a year-on-year increase of 15.6%, far outperforming GDP growth.

Reporter Kim Hye-min has the details.

[Reporter]

Following a 1.8% rise in the first quarter, real GDP grew by another 0.6% in the second quarter, maintaining an unexpectedly strong growth trajectory.

This was driven by an unprecedented boom in semiconductor exports.

Real GDI, which shows actual earnings, increased by 15.6% compared to the second quarter of last year.

While export volumes grew, the surge in export prices was even steeper, widening the gap between the two indicators.

[Lee Dong-won, Director General of the Economic Statistics Department II at the Bank of Korea: If the upward trend of real GDI continues, it will have the effect of expanding corporate investment capacity and household purchasing power, thereby exerting a positive impact on domestic industries...]

The facility investment growth rate expanded from 1.5% last year to 5.4% in the first half of this year, while private consumption grew from 1.5% to 2.5%.

It is estimated that at least 3 trillion won was spent on home appliances alone, buoyed by events such as Samsung Electronics' Onnuri gift certificate refund promotions.

An official from the Bank of Korea explained that semiconductor fever has spilled over into private consumption, noting, "I understand that Samsung Electronics' Onnuri gift certificates are even being used at Sokcho Central Market."

With the KOSPI surging significantly in the second quarter, spending on department store goods, apparel, and bags also increased.

Projections suggest that annual growth of 3% and a per capita national income of 40,000 USD are achievable if this trend continues.

As purchasing power expands and inflationary pressure intensifies, an additional base rate hike is increasingly seen as a fait accompli.

Some voices in the market are anticipating a rate hike as early as next month.

Experts pointed out that how to spread the warmth of this high growth is a crucial policy task for the second half of the year.

[Seok Byung-hoon, Professor of Economics at Ewha Womans University: I believe that K-shaped (polarized) growth is still ongoing. Recently, the delinquency rate for small and medium-sized enterprises has hit a record high, and delinquency rates for sole proprietors are also rising...]

The domestic stock market also gained momentum.

Bolstered by Google parent Alphabet's announcement of plans to expand semiconductor investments, along with news of the semiconductor-led surprise growth, the KOSPI recovered the 7,000 threshold in five trading sessions.

(Video Reported by Park Hyun-철 | Video Edited by Choi Jin-gi | Design by Jang Seong-beom, Hwang Se-yeon, Cho Soo-in)
※ Please note: This article was translated by AI and may contain errors.