S. Korea's economy grows 0.6 pct in Q2, matching initial estimate: BOK

SEOUL, September 8 (Yonhap) -- South Korea's economy expanded by 0.6 percent in the second quarter of 2025, as indicated by central bank data released on Tuesday. This growth figure was consistent with the Bank of Korea's (BOK) initial projection, which had been published last month. The GDP, a primary gauge of economic performance, increased by 0.6 percent from the previous quarter (Q2) and 3.7 percent year-on-year.

This growth rate marked a continuation of the upward trend observed in the first quarter, which had also seen a 3.8 percent increase. The BOK's latest revision, however, adjusted the growth rate in construction and intellectual property investments upward by 0.1 percentage point each, while reducing government consumption growth by the same amount.

Nominal GDP, which accounts for inflation, rose by 9.2 percent over the same period, marking the fastest growth since the third quarter of 1979, when the economy experienced a 27.7 percent surge. Similarly, per capita gross national income (GNI) surged by 8.8 percent on a nominal basis and 26.4 percent on a year-on-year basis. The real GNI, adjusted for inflation, grew by 3.1 percent from the prior quarter and 15.6 percent year-on-year, marking the most rapid growth since the fourth quarter of 1988, when real GNI jumped by 15.7 percent.

The central bank's optimism about sustained economic growth has prompted an upward revision of its 2026 growth forecast to 3.3 percent, largely driven by robust exports fueled by the ongoing semiconductor super cycle.