The photo shows export vehicles parked at Pyeongtaek Port in Poseung-eup, Pyeongtaek City, Gyeonggi Province last July. / News1
In the second quarter of this year (April to June), Korea’s economy grew by 0.7% compared to the previous quarter. This is 0.1 percentage points higher than the preliminary estimate of 0.6%. The growth is attributed to an increase in exports and a reduced decline in construction investment.
The real Gross National Income (GNI), which aggregates all the income earned by the entire population both domestically and abroad, increased by 1% during the same period. A growth rate in the 1% range is the first in five quarters since the first quarter of last year.
On September 3rd, the Bank of Korea released the “Preliminary Annual National Income for the Second Quarter of 2025.” According to the preliminary figures, exports in the second quarter increased by 4.5% (compared to the preliminary estimate of 4.2%), and imports increased by 4.2% (compared to the preliminary estimate of 3.8%). The growth in exports was led by semiconductors and petroleum/chemical products, while imports increased mainly in energy products and transportation services.
Construction investment decreased by 1.2%, mainly due to civil engineering construction, which was a 0.4 percentage point upward revision from the preliminary estimate. Facility investment was recorded as a 2.1% decline, a 0.6 percentage point downward revision, due to a reduction in machinery such as transportation equipment like ships and semiconductor manufacturing equipment.
The real GNI for the second quarter of this year was recorded at 577.5 trillion won, which increased by 1% from the previous quarter, outperforming the real GDP growth rate of 0.7%.
The real net factor income from abroad (the income earned by nationals abroad minus the income earned by foreigners domestically) decreased from 13 trillion won in the first quarter to 10.2 trillion won in the second quarter of this year. However, the terms of trade improved, reducing the real trade loss from -13 trillion won to 8.6 trillion won over the same period.