"Surprise" Growth Streak Continues in Q2... KOSPI Recovers the 7,000 Milestone

[Anchor]

Boosted by robust semiconductor exports, South Korea's economy achieved another surprise growth in the second quarter. As projections emerge that annual growth of 3% and a per capita gross national income of 40,000 dollars are within reach, the KOSPI also recovered the 7,000 line today (the 23rd).

Reporter Kim Hye-min has more.

[Reporter]

Real gross domestic product (GDP) continued its better-than-expected growth momentum, rising 0.6% in the second quarter following a 1.8% expansion in the first quarter.

This was driven by an unprecedented boom in semiconductor exports.

Real gross domestic income (GDI), which reflects actual purchasing power, increased by 15.6% compared to the second quarter of last year.

While export volumes grew, the upward trend 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 in real GDI continues, it will have a positive impact on domestic industries by expanding corporate investment capacity and household purchasing power.]

The growth rate of facility investment 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, driven by events such as Samsung Electronics' Onnuri gift certificate refund promotions.

An official from the Bank of Korea explained that "Samsung Electronics' Onnuri gift certificates are even being used as far as Sokcho Central Market," noting that the semiconductor boom has successfully translated into private consumption.

With the KOSPI surging significantly in the second quarter, spending on department stores, clothing, and bags also increased.

If this trend continues, forecasts suggest that annual growth of 3% and a per capita GDI of 40,000 dollars are achievable.

As purchasing power increases and inflation pressures grow, an additional base rate hike is increasingly becoming a given.

Voices in the market are also anticipating a hike next month.

Experts pointed out that ensuring the warmth of high growth reaches all corners of the economy will be a crucial policy task for the second half of the year.

[Professor Seok Byung-hoon, Department of Economics, Ewha Womans University: We see that K-shaped (polarized) growth is still persisting. Recently, delinquency rates for small and medium-sized enterprises have hit record highs, and sole proprietor delinquency rates are also rising....]

The domestic stock market also gained momentum.

Following Google parent Alphabet's announcement overnight of plans to expand semiconductor investments, coupled with news of the semiconductor-led surprise growth, the KOSPI recovered the 7,000 line in five trading sessions.

(Camera Reporter: Park Hyun-철 / Video Editor: Choi Jin-gi / Graphics: Jang Sung-bum, Hwang Se-yeon, Cho Soo-in)
※ Please note: This article was translated by AI and may contain errors.