Fueled by the AI boom, South Korea’s economic output rose by 1.7 percent in the first quarter.
April 23, 2026, 03:51April 23, 2026, 03:51
Gross domestic product (GDP) recorded the strongest growth in five and a half years, according to current figures from the Korean central bank in Seoul.
Despite recent stock market turmoil, the South Korean economy has recently grown significantly. Image: keystone
Growth was almost twice as high as the central bank’s original forecast of 0.9 percent. The national economy benefited particularly from the strong global demand for artificial intelligence (AI). South Korea’s exports increased by 5.1 percent in the period from January to March. Asia’s fourth-largest economy is one of the most important producers of computer chips in the world.
In February, the central bank assumed that South Korea’s GDP could increase by a total of two percent in 2026. However, the conflict situation in the Middle East and the resulting energy crisis have significantly clouded the economic outlook for the next few months. South Korea, like most East Asian economies, relies heavily on oil supplies via the Strait of Hormuz, which is currently largely closed.
The central bank’s quarterly figures are an advance estimate, which are usually only slightly adjusted. (sda/dpa)