South Korea Economy Expands 0.6% in Q2 on Chip Exports

Key facts

• South Korea's economy grew 0.6% in the second quarter.
• The Q2 growth rate exceeded the median market estimate of 0.4%.
• Exports, particularly semiconductors, machinery, and equipment, drove the growth.
• Private consumption increased by 0.4%, while construction investment fell by 0.2%.

South Korea's economy expanded by 0.6% in the second quarter, surpassing economists' expectations and driven by a semiconductor export boom. The Bank of Korea reported the advanced estimate on Thursday, showing a deceleration from the 1.8% growth recorded in the first quarter. The overall growth was bolstered by a 1.4% increase in exports, particularly semiconductors, machinery, and equipment. However, this was partially offset by a 0.2% decline in construction investment. Private consumption saw a modest increase of 0.4%. On a year-on-year basis, GDP expanded by 3.7%.