South Korea’s economy expanded by 0.6% quarter-on-quarter in the second quarter of 2026, beating market expectations of 0.4% but easing from the 1.8% growth recorded in the first quarter, which had marked the strongest quarterly performance since Q1 2021, according to preliminary estimates.
Growth was largely supported by solid export activity, which helped offset headwinds from the ongoing conflict in the Middle East. Exports increased by 1.4%, led by strong demand for IT products such as semiconductors and machinery, while imports rose at a more moderate pace of 0.8%.
Private consumption grew 0.4%, underpinned by higher spending on both goods and services, and government consumption rose 0.2%. Investment in intellectual property products strengthened by 3.3%, and facility investment edged up 0.2%. In contrast, construction investment declined by 0.2%, weighed down by weaker civil engineering activity.
On an annual basis, GDP grew 3.7% in Q2, slightly below the 3.8% recorded in Q1—which was the fastest year-on-year expansion since Q4 2021—but still above market forecasts of 3.5%.
