S. Korea’s economy grows 1.3% in Q1

Apr 25, 2024, 09:48 pm

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South Korea’s economic growth was strong at 1.3 percent in the first quarter, led by expansion of exports of semiconductors and automobiles. The photo shows containers piled up at Busan Port./ Source: Yonhap

AsiaToday reporters Lee Ji-sun & Jeong Geum-min

South Korea’s economy grew 1.3 percent in the first quarter, beating all estimates.

The country’s real gross domestic product (GDP) increased 1.3 percent in the January-March period from the previous quarter, according to data by the Bank of Korea (BOK) on Thursday. It marks the largest quarterly growth in 27 moths since the fourth quarter of 2021, when it posted 1.4 percent.

“Our economy grew 1.3 percent quarter-on-quarter and 3.4 percent year-on-year,” the presidential office said. “Except for 2020-2021, which is the period of the pandemic, it is the highest growth rate in 4 years and 6 months,” the presidential office said. It said South Korea is seeing a balanced recovery between exports and domestic demand, and cautiously projected that the nation’s economic growth for this year may be able to exceed its 2.2 percent forecast.

The growth was led by both exports and construction investment, which increased 0.9 percent and 2.7 percent, respectively, in the first quarter.

On the same day, SK Hynix reported an ‘earnings surprise’ for the first quarter, with a record operating profit of 2.886 trillion won. Last year, it had posted a total deficit of 7.7 trillion won, marking the beginning of the semiconductor recession. Industry observers say this is evidence of the end of the long slump in the chip industry.

Along with semiconductors, automobiles also led the nation’s economic growth. Hyundai Motor, the country’s biggest carmaker, posted a record revenue of 40.6 trillion won. Despite the decrease in sales, the company benefited significantly from the ‘mix improvement’ centered on premium vehicles. Despite uncertain external conditions, the company is growing significantly through aggressive marketing in major markets, such as North America and Europe as well as India, the potential largest market.

#economy #SK hynix #Hyundai Motor