Boosted by a semiconductor boom, the regional economic growth rate in the first quarter came in at 3.8%, the Ministry of Data and Statistics (MODS) said on the 29th. The rate was the highest in about four years since the fourth quarter of 2021 (4.2%). Back in 2021, the pandemic led to a surge in remote work and classes, which drove demand for IT products and lifted the semiconductor cycle.
According to the Ministry of Data and Statistics (MODS), real gross regional domestic product (GRDP) in the first quarter grew 3.8% from a year earlier. By region, areas with semiconductor production clusters posted higher growth. Among the five major regions, the capital area rose 5.2%, and the Chungcheong region grew 4.2%, both above the national average.
The capital area hosts Samsung Electronics and SK hynix's Gyeonggi campuses. Gyeonggi's GRDP grew 6.2%. The Chungcheong area hosts SK hynix's Cheongju campus. North Chungcheong's GRDP reached 13.8%.
By contrast, Honam was the only one among the five major regions to post 0% growth. South Jeolla contracted (-0.8%), the worst growth among all provinces and metropolitan cities. Jeong Seon-kyung, head of income statistics at the data agency, said, "Petrochemicals and shipbuilding, Honam's key industries, were weak," and noted, "In South Jeolla, a temporary suspension at a local nuclear power plant had an impact."