The Bank of Korea on July 23 said gross domestic product in the second quarter of 2026 inched up 0.6% from the previous quarter and 3.7% year on year. (Dongwon Global Terminal Busan)

By Kang Gahui

The economy in the second quarter maintained its higher-than-expected growth.

The Bank of Korea in a news release on July 23 said gross domestic product between April and June rose 0.6% from the first quarter and 3.7% year on year.

By sector, private consumption inched up 0.4% thanks to growth in goods and services, while government consumption rose 0.2% thanks to higher spending on health insurance benefits.

Facilities investment rose 0.2% driven primarily by machinery. Investment in intellectual property products grew 3.3% mainly due to expanded research and development and investment in software. In contrast, construction investment dipped 0.2% due to sluggish civil engineering activity.

By industry, manufacturing (1.2%) and services (1.1%) led growth. Agriculture, forestry and fisheries fell 7.1% and construction dipped 1.9%.

Gross domestic income, an indicator of the public's real purchasing power, rose 3.6% from the previous quarter and 15.6% year on year, the highest jump in 38 years.

kgh89@korea.kr