Key facts
- South Korea's economy grew 0.6% in the second quarter.
- The growth was driven by strong exports and investments related to artificial intelligence.
- On a yearly basis, the economy expanded 3.7% in the second quarter.
- Nominal GDP saw its sharpest growth since the third quarter of 1979.
- Per capita gross national income (GNI) also experienced significant nominal and real growth.
South Korea's economy demonstrated robust growth in the second quarter, expanding by 0.6% from the previous quarter and 3.7% year-on-year, according to preliminary data from the Bank of Korea (BOK).
This economic improvement is largely attributed to strong exports and investments driven by the artificial intelligence sector. The country's nominal gross domestic product (GDP) saw a significant increase, growing 9.2% quarter-on-quarter and 26.4% year-on-year, marking the sharpest growth since the third quarter of 1979.
Per capita gross national income (GNI) also experienced substantial gains, rising 8.8% nominally from the previous quarter and 26.4% from a year earlier. Real GNI growth was also strong, up 3.1% quarter-on-quarter and 15.6% year-on-year.
Seoul's stock market reflected this optimism, with shares surging 4.61%, fueled by AI advancements, including OpenAI's new GPT-6 Astra model. The central bank has revised its 2026 growth estimate upward to 3.3%, citing solid exports driven by the ongoing semiconductor super cycle.