South Korea Q2 GDP Grows 0.6% on Strong Chip Exports

South Korea's economy expanded by 0.6% in the second quarter compared with the previous quarter, according to the Bank of Korea (BOK). The growth far exceeded the BOK’s May forecast of 0.2% and represented a 3.7% increase on a year‑on‑year basis. The surge was driven mainly by a rebound in exports, especially semiconductors. Chip shipments rose 180.6% in July, and total outbound shipments hit a record $102.25 billion in June, with semiconductor exports climbing to $44.82 billion, nearly three times the prior year’s level. Nominal GDP growth forecasts were also raised, with Citi economists projecting a 20.7% rise for the year, the strongest since 1991. Private consumption, government spending, and facility investment all posted modest gains, while construction investment fell slightly. The BOK indicated it may lift its growth outlook further due to the unexpected export strength.