The South Korean leading index KOSPI recorded gains in the spring.Image: keystone
Jun 9, 2026, 7:26 amJun 9, 2026, 7:26 am
South Korea’s economy posted surprisingly strong growth of 1.8 percent in the first quarter. The central bank recently further raised its forecast for 2026.
As demand for computer and memory chips to expand artificial intelligence continues, South Korea’s economic output rose by 1.8 percent in the first quarter. The East Asian country’s gross domestic product (GDP) recorded its strongest quarterly growth in five and a half years, according to figures from the Korean central bank in Seoul.
Growth is 0.1 percentage points higher than assumed in an advance estimate published at the end of April. Compared to the same period last year, South Korea’s GDP rose by 3.8 percent.
Asia’s fourth-largest economy is one of the most important producers of computer chips in the world. The Korean central bank recently raised its forecast for the current year and expects growth of 2.6 percent for 2026. The International Monetary Fund (IMF) expects growth of 1.9 percent for South Korea.
This means that the South Korean economy has so far been able to robustly withstand the conflict situation in the Middle East and the resulting energy crisis. South Korea, like most East Asian economies, relies heavily on oil supplies via the largely closed Strait of Hormuz. (nil/sda/dpa)