Exports

Korean Economy Shows Strong Recovery in Second Quarter

Strategic Insights

Jul 23, 2025 — 1 min read

The Korean economy rebounded in the second quarter of 2024 with a 0.6% growth in real GDP, surpassing market expectations of a 0.5% gain. This marked the fastest quarterly growth since the first quarter of 2024, driven by a recovery in private consumption and robust exports. The economic contraction in the first quarter, which was attributed to domestic political uncertainty and US tariff measures, was effectively offset in the second quarter.

Key Takeaways:

The Korean economy grew at the fastest pace since early 2024 in the second quarter, with a 0.6% increase in real GDP.
Private consumption rebounded in the second quarter, with expenditures on automobiles and culture increasing.
Exports led the growth, with a 4.2% increase from the previous quarter, driven by strong global demand for semiconductors and petrochemical products.
Government spending gained 1.2% in the second quarter, while facility investment dipped 1.5% and construction investment shed 1.5%.
Net exports and domestic demand each contributed 0.3 percentage point to the economic growth in the second quarter.
The impact of US tariffs was limited in the second quarter, as the 25% reciprocal tariffs were postponed.
The central bank forecasts the Korean economy to grow 0.8% this year, following a 2% on-year expansion in 2023.

Statistics:

Real GDP growth in the second quarter: 0.6%
Private consumption growth in the second quarter: 0.5%
Exports growth in the second quarter: 4.2%
Government spending growth in the second quarter: 1.2%
Facility investment growth in the second quarter: -1.5%
Construction investment growth in the second quarter: -1.5%
Net exports contribution to economic growth: 0.3 percentage points
Domestic demand contribution to economic growth: 0.3 percentage points
Central bank's growth forecast for 2024: 0.8%

Sources:

"Korea's Economy Shows Signs of Rebound in 2nd Quarter" by the Bank of Korea
"Korean Economy Grows 0.6% in 2nd Quarter, Exceeding Forecast" by Reuters

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