Real GDP expands 0.6 percent in second quarter
Real gross domestic product in South Korea increased by 0.6 percent in the second quarter of 2026 compared to the previous period, driven by exports and intellectual property investment. Year-on-year growth reached 3.7 percent according to the Bank of Korea's advance estimate.
Semiconductors lead export recovery
Exports expanded by 1.4 percent in the second quarter, supported by strong gains in semiconductors and machinery equipment.
On the expenditure side, private consumption grew by 0.4 percent with increased spending on household appliances and dining out, while government consumption edged up 0.2 percent.
Investment trends diverged: intellectual property products surged 3.3 percent due to robust research and software spending, and facilities investment ticked up 0.2 percent.
Conversely, construction investment slipped 0.2 percent owing to a contraction in civil engineering projects.
Gross domestic income recorded a notable increase of 3.6 percent compared to the prior quarter, reflecting improved terms of trade.
Manufacturing offsets agricultural slump
On the production side, manufacturing output advanced 1.2 percent, anchored by computer, electronic and optical products alongside machinery equipment.
Services activity similarly gained momentum, rising 1.1 percent on broad-based gains across wholesale and retail trade, accommodation and food services, and financial intermediation.
These positive drivers easily offset sharp contractions in primary sectors, where agriculture, forestry and fishing plummeted 7.1 percent due to reduced crop yields and fishing output.
Electricity, gas and water supply also contracted 1.3 percent amid lower water supply activities.
Tech momentum masks domestic fragilities
The quarterly expansion highlights a heavy reliance on high-tech exports while domestic construction and primary sectors continue to lag.
Persistent weakness in construction points to ongoing vulnerabilities in real estate and infrastructure spending.
Consequently, broader economic resilience remains uneven despite the headline growth rebound.