Semiconductor Boom Drives South Korea’s Economy to 26.4% Growth, While Construction and Agriculture Shrink
Translated from Korean and summarized by DistantNews. Read the original for the full story.
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- Nominal gross domestic product reached 846.9 trillion won in the second quarter, up 26.4% from a year earlier and the fastest growth since the third quarter of 1979.
- The increase was driven by strong semiconductor exports, while construction and agriculture declined.
- Rising incomes may support South Korea’s prospects of reaching per-capita gross national income of $40,000, but greater reliance on semiconductors and higher inflation could pressure households.
South Korea’s nominal economy expanded 26.4% in the second quarter from a year earlier, marking its fastest year-on-year growth in 47 years. The surge reflected the continuing boom in semiconductor exports.
The Bank of Korea said nominal gross domestic product reached 846.9 trillion won, or about 9.2% higher than in the previous quarter. The second-quarter figure represented the strongest year-on-year increase since the July-to-September quarter of 1979.
Total national income also rose sharply. The government and the Bank of Korea said South Korea’s per-capita gross national income could reach $40,000 this year.
The headline growth figures, however, concealed weakness in other parts of the economy. Construction and agriculture, forestry and fisheries contracted, while the manufacturing sector became increasingly dependent on semiconductors. The rise in income also expanded consumer demand and increased pressure on prices, raising concerns about the burden on ordinary households.
About this summary
Originally published by Dong-A Ilbo in Korean. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.
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