S. Korea's Economy Grows 0.6% in Q2, Offset by Semiconductor Exports Amid Middle East Risks

South Korea's economy continued its steeper-than-expected growth trajectory, overcoming risks stemming from the Middle East on the back of a boom in semiconductor exports.

In particular, thanks to soaring semiconductor prices, real purchasing power indicators recorded their highest growth rate in approximately 38 years.

The Bank of Korea announced today (July 23) that the real gross domestic product (GDP) growth rate for the second quarter (compared to the previous quarter, preliminary) was tallied at 0.6%.

This is 0.4 percentage points higher than the BOK's second-quarter growth forecast of 0.2% presented in May.

Following a sharp rebound from -0.1% in the fourth quarter of last year to 1.8% in the first quarter of this year, quarterly growth maintained a favorable level in the second quarter, overcoming base effects.

Compared to the same period last year, the figures stood at 3.8% in the first quarter of this year and 3.7% in the second quarter, showing a similar level.

Entering the second quarter, downward pressure on growth intensified as oil price shocks triggered by the Middle East conflict materialized, but unprecedented semiconductor export booms are analyzed to have offset this.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.