Korea's economy grows 0.6% in Q2, matching initial estimate: BOK

The Korean economy experienced a modest 0.6% growth in the second quarter, aligning with the initial estimates provided by the Bank of Korea (BOK). This growth was primarily fueled by robust exports and investments in artificial intelligence (AI). According to preliminary data from the BOK, the country's real gross domestic product (GDP) increased by 0.6% from the previous quarter, which encompassed April to June.

On a yearly basis, the economy expanded by 3.7% during the same period, reflecting sustained growth momentum following a 3.8% year-on-year increase in the first quarter. The on-quarter figure coincided with the BOK's earlier estimate released last month, although it was adjusted upward by 0.1 percentage points in construction investment and intellectual property investment, while reducing government consumption growth by the same margin.

Furthermore, Korea's nominal GDP expanded by 9.2% in the three-month period ending in June from the prior quarter, and by a substantial 26.4% from a year earlier, marking the most significant growth since the third quarter of 1979, when the economy surged by 27.7%.