Korea's gross domestic product (GDP) grew by 0.7% in the second quarter of this year. This is a 0.1 percentage point increase from the previously announced preliminary figure of 0.6%. The increase is attributed to rising exports and a mitigated decline in construction investment.
During the same period, the real income earned by the citizens of Korea increased by 1.0% as the improvement in trade conditions reduced trade losses. A growth rate in the 1% range has not been seen since the first quarter of last year, marking five consecutive quarters of increase.
According to the '2025 Second Quarter National Income (Preliminary)' released by the Bank of Korea on the 3rd, the real GDP increased by 0.7% compared to the previous quarter. Although the quarterly GDP contracted by 0.2% in the first quarter of this year, it rebounded to growth in just one quarter.
As a result of adding statistics that were not reflected in the previous preliminary figures, the increases in exports and imports have expanded. Exports and imports rose by 4.5% and 4.2%, respectively, compared to preliminary figures of 4.2% and 3.8%. Exports increased primarily in semiconductors and petroleum and chemical products, while imports rose mainly in energy and transport services.
The decline in construction investment has lessened. Construction investment decreased by 1.2%, which was revised up by 0.4 percentage points from the preliminary figure. The decrease in construction investment was primarily in civil engineering. Facility investment fell by 2.1% due to a reduction in transport equipment and machinery for semiconductor manufacturing, which expanded the decline by 0.6 percentage points from the preliminary figure.
Consumption remained the same as the preliminary figure. Private consumption rose by 0.5% centered on goods like automobiles and services such as healthcare, while government expenditure expanded by 1.2% due to increased health insurance benefits.
Nominal GDP was recorded at 660 trillion won, up 2.0% from the previous period. Compared to the same period last year, it rose by 3.4%. The GDP deflator, which indicates the overall price level, increased by 2.8% over the year. The GDP deflator is a comprehensive price index that encompasses all price factors affecting national income, calculated by dividing nominal GDP by real GDP.
The total savings rate rose to 35.6%, an increase of 0.7 percentage points from the previous period. This was influenced by the growth rate of gross national disposable income (1.9%) exceeding that of final consumption expenditure (0.9%). The domestic investment rate dropped to 28.8%, down 0.1 percentage points compared to the previous period. The foreign investment rate rose to 6.7%, an increase of 0.7 percentage points from the previous period.
Real gross national income (GNI) in the second quarter of this year was estimated at 577.5 trillion won, an increase of 1.0% from the previous period, exceeding the real GDP growth rate. GNI combines all income earned by the population over a certain period, both domestically and internationally, including wages, interest, and dividends. The growth rate in the 1% range is the first since an increase of 1.7% in the first quarter of last year, marking the fifth quarter.
Meanwhile, the Bank of Korea announced it would begin providing distribution national income statistics quarterly, which had previously been provided only annually. Distribution national income is compiled to understand how the value added created through economic activity in a country is distributed among the economic entities that provided production factors.
An official from the Bank of Korea noted, "With the reduction in the announcement cycle from annually to quarterly, we expect an increase in its utility for policy formulation and related research."
한은 관계자는 "연간에서 분기로 공표 주기가 단축됨에 따라 정책 수립 및 관련 연구 등에서의 활용도가 제고될 것으로 기대한다"고 말했다.