Real GNI rises 3.1 percent in second quarter as trade terms improve
South Korea's real gross national income grew by 3.1 percent in the second quarter of 2026, while real gross domestic product increased by 0.6 percent. The Bank of Korea reported that improved terms of trade lifted national income growth well above domestic output.
Semiconductors drive manufacturing gains
South Korea's real gross domestic product expanded by 0.6 percent quarter-on-quarter in the second quarter of 2026, matching advance estimates and advancing 3.7 percent year-on-year.
On the production side, manufacturing expanded 1.4 percent, powered by computer, electronic, and optical products.
Services grew 1.0 percent, supported by wholesale and retail trade, accommodation and food services, finance and insurance, and information technology.
In contrast, construction output contracted 1.9 percent amid declining civil engineering activity.
Expenditure data showed exports rising 1.3 percent on stronger semiconductor and machinery shipments, while imports increased 0.7 percent.
Private consumption rose 0.4 percent, and intellectual property investment gained 3.4 percent.
Corporate profits outpace wage growth
Nominal gross domestic product increased 9.2 percent quarter-on-quarter, driven by an 18.5 percent expansion in gross operating surplus and a 1.9 percent increase in employee compensation.
The annual GDP deflator accelerated to 21.9 percent.
South Korea's gross saving ratio rose 3.9 percentage points to 45.6 percent, while household net savings climbed to 9.7 percent.
Conversely, the gross domestic investment ratio declined 1.1 percentage points to 24.2 percent, reflecting softer capital formation.
A lopsided corporate windfall
The widening gap between corporate profit expansion and sluggish wage gains reveals an unbalanced recovery.
Strong tech export pricing conceals deep domestic sluggishness and ongoing construction weakness.
Without stronger investment, these terms-of-trade windfalls offer little durable stability.