Economy

South Korea's Economy Surprises with 0.6% Growth in Q2 2025, Outperforming Expectations

South Korea's Economic Rebound

In a surprising turn of events, South Korea's real gross domestic product (GDP) expanded by 0.6% quarter-on-quarter in the second quarter of 2025, according to the Bank of Korea's (BOK) advanced estimates. This growth not only surpassed expectations but also marked a significant recovery from the first quarter's contraction of 0.2%.

Year-on-Year Growth and GDI Rise

The report also highlighted a 0.5% year-on-year growth in real GDP, alongside a notable 1.3% increase in real gross domestic income (GDI) compared to the previous quarter, signaling a robust economic upturn.

Consumption Trends

Private consumption saw a 0.5% uptick, while government consumption grew by 1.2%, driven largely by heightened expenditures on health care benefits.