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SEOUL, July 23 (Yonhap) -- The South Korean economy grew 0.6 percent in the second quarter from a quarter earlier as robust exports offset downward pressure from lingering Middle East tensions, central bank data showed Thursday.

The country's real gross domestic product (GDP) -- a key measure of economic growth -- rose 0.6 percent in the April-June period from three months earlier, according to advance data from the Bank of Korea (BOK).

The second-quarter reading marked a decline from the previous quarter's 1.8 percent expansion, the strongest quarterly growth since the third quarter of 2020, when the economy expanded 2.2 percent.

However, it beat the BOK's earlier forecast of 0.2 percent made in May.

From an on-year basis, the Korean economy grew 3.7 percent in the second quarter, slightly down from the first quarter's 3.8 percent growth.

Asia's fourth-largest economy contracted by 0.2 percent in the first quarter of 2025 before recovering with growth of 0.7 percent and 1.3 percent in the following quarters. But it backtracked in the fourth quarter, declining 0.2 percent amid weak facility investment and a downturn in the construction sector.

This file photo, taken April 3, 2026, shows vehicles parked at a port in Pyeongtaek, some 60 kilometers south of Seoul, awaiting overseas shipment. (Yonhap)

In detail, exports rose 1.4 percent from the previous quarter and imports increased 0.8 percent, while private consumption added 0.5 percent.

Net exports contributed 0.3 percentage point to the quarterly GDP growth, and private consumption contributed 0.2 percentage point.

Government spending edged up 0.2 percent, and facility investment increased 0.2 percent on a quarterly basis.

However, construction investment fell 0.2 percent.

Real gross domestic income (GDI) rose 15.6 percent on-year in the second quarter, marking the highest level since the first quarter of 1988, when it reached 16.4 percent.

In its latest outlook published in May, the BOK projected the economy to grow 2.6 percent in 2026.

But the central bank said last week that it would raise its growth forecast to some extent on stronger-than-expected chip-driven exports.

South Korea's outbound shipments reached a record US$102.25 billion in June, up 70.9 percent from a year earlier and surpassing the $100 billion mark for the first time. Exports of semiconductors nearly tripled to reach a record $44.82 billion.

Containers are stacked at a port in the southern coastal city of Busan, in this file photo from July 15, 2026. (Yonhap)

brk@yna.co.kr
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