Overview

• Preliminary Bank of Korea data show GDP rose 0.6% quarter-on-quarter in Q2, exceeding market forecasts and reversing a 0.2% contraction in Q1.
• Exports grew 4.2%, led by semiconductor and petrochemical shipments, contributing roughly half of the quarter’s expansion.
• Private consumption climbed 0.5% on higher spending for automobiles and leisure, accounting for the other half of growth.
• Companies front-loaded shipments ahead of the August 1 deadline to limit the impact of impending 25% US reciprocal tariffs.
• The central bank held its 2025 growth outlook at 0.8% while preparing for possible tariff-induced headwinds.