AI exports power Korea’s Q2 growth

The Korean economy grew 0.6 percent in the second quarter from a quarter earlier, driven by strong exports and investments related to AI, central bank data showed Tuesday.

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

The economy expanded 3.7 percent on year in the second quarter, extending its growth momentum after expanding 3.8 percent on year in the first quarter.

The on-quarter figure matched the BOK's earlier estimate released last month, but it revised up growth in construction investment and intellectual property investment by 0.1 percentage point each, while cutting government consumption growth by 0.1 percentage point.

The country's nominal GDP grew 9.2 percent in the three-month period that ended in June from three months earlier and expanded 26.4 percent from a year earlier, marking the sharpest growth since the third quarter of 1979, when the economy surged 27.7 percent on year.

The central bank data also showed that the country's per capita gross national income (GNI) rose 8.8 percent on a nominal basis from a quarter earlier and 26.4 percent from a year earlier.

Real GNI rose 3.1 percent from a quarter earlier and 15.6 percent from a year earlier, marking the steepest growth since the fourth quarter of 1988, when real GNI jumped 15.7 percent on year.

Based on the continuing growth momentum, the central bank earlier revised up its 2026 growth estimate to 3.3 percent, citing solid exports driven by the ongoing semiconductor super cycle.

Yonhap