Overview
- The central bank revised second-quarter GDP growth to 0.7% from 0.6%, the fastest quarterly pace since early 2024.
- Exports rose 4.5% quarter-on-quarter, led by semiconductors and petrochemical products.
- Private consumption increased 0.5% and government spending grew 1.2%, pointing to a gradual recovery in domestic demand.
- Investment was uneven, with facility investment down 2.1% and construction down 1.2%, though late-quarter strength in construction and intellectual property improved the estimate.
- The BOK now forecasts 0.9% growth for 2025, noting risks from U.S. tariff measures and a reported 12% year-on-year drop in August shipments to the United States.