FX.co ★ South Korea GDP Growth Beats Expectations in Q2

In the second quarter of 2025, South Korea's economy experienced a quarter-on-quarter growth of 0.6%, recovering from a 0.2% contraction in the first quarter and exceeding market expectations of a 0.5% increase, as indicated by preliminary data. Private consumption saw a 0.5% rise, bolstered by increased expenditure on goods such as motor vehicles and in service sectors like recreation and culture. Government consumption went up by 1.2%, largely due to expanded health care benefits. On the downside, construction investment fell by 1.5%, with both building and civil engineering activities seeing a decline, and facilities investment also decreased by 1.5% as a result of reduced purchases of machinery and transport equipment. Exports witnessed a 4.2% upswing, fueled by semiconductors, petroleum products, and chemicals; simultaneously, imports grew by 3.8%, primarily driven by heightened demand for energy resources, including crude oil and natural gas.