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South Korea’s real gross domestic product (GDP) grew 0.7% quarter-on-quarter in the second quarter on a preliminary basis.

On September 3, the Bank of Korea revised its Q2 growth to 0.7%, up 0.1 percentage point from the advance estimate. Reflecting late-arriving June data not available in the flash figures, construction investment was revised up by 0.4 percentage point, intellectual property products investment by 1.1 percentage points, and exports by 0.4 percentage point, while facilities investment was revised down by 0.6 percentage point.

By industry, manufacturing expanded 2.5% from the previous quarter, led by computers, electronics and optical equipment, and transport equipment. Services rose 0.8%, as gains in wholesale & retail, accommodation & food, and transportation offset weakness in information and communications. Construction contracted 3.6% on declines in building and civil engineering.

On the expenditure side, government consumption increased 1.2%, driven by higher National Health Insurance benefit payments, while private consumption grew 0.5% as spending on both goods (such as passenger cars) and services (including healthcare) rose.

Construction investment fell 1.2%, centered on civil engineering. Facilities investment declined 2.1% amid lower spending on transport equipment (including ships) and machinery (such as semiconductor manufacturing equipment).

Exports increased 4.5% on stronger shipments of semiconductors and petroleum/chemical products, while imports rose 4.25% on higher purchases of energy commodities including crude oil and natural gas.