South Korea’s economy lost momentum in the second quarter of 2026, with quarter-on-quarter GDP growth easing to 0.6%, down sharply from the previous quarter’s 1.7%. The latest data, updated on 7 September 2026, indicate a clear moderation in the pace of expansion compared with earlier in the year.
On a quarter-over-quarter basis, the current 0.6% reading reflects how much the economy grew in the second quarter relative to the first quarter of 2026. By contrast, the earlier 1.7% figure captured the change in GDP in the previous quarter versus the quarter before it. The shift suggests that while South Korea remains in positive growth territory, the rapid expansion seen previously is not being sustained at the same rate.
The deceleration in quarterly growth will likely refocus attention among investors and policymakers on the durability of South Korea’s recovery trajectory through the rest of 2026, as markets assess whether the second-quarter slowdown signals a temporary pause or the start of a more prolonged cooling phase.
