The Bank of Korea on Sept. 8 said the economy in the second quarter grew 0.6% from the first. Shown is a container ship associated with port-related industries entering Busan Port. (Busan Port Authority)

By Lee Dasom

The economy maintained steady growth in the second quarter backed by the semiconductor boom and improved trade terms.

The Bank of Korea on Sept. 8 said economic growth per preliminary data on gross domestic product (GDP) grew 0.6% in the second quarter from the first, matching the central bank's preliminary estimate in July.

Private consumption and exports drove growth. Overseas shipments rose 1.3% due to strong demand for chips, machinery and equipment, while imports inched up 0.7% led by cars and machinery.

Domestic demand also showed signs of recovery. Private consumption grew 0.4% led by higher spending on goods such as home appliances, food and lodging services. Government spending also inched up 0.1% primarily thanks to expenditures in health insurance benefits.

Investment performance varied by sector. That in products related to intellectual property increased 3.4% thanks to the expansion of research and development and software. Facility investment went up 0.2% led by the acquisition of semiconductor manufacturing equipment.

Investment in construction, however, dipped 0.1% due to a slowdown in civil engineering projects.

Income indicators also showed major improvement. Nominal GDP in the second quarter soared 9.2% from the first and 26.4% year on year; nominal gross national income (GNI) also jumped 8.8%. Nominal net factor income decreased to KRW 12 trillion from KRW 13.7 trillion, but this was offset by the substantial growth in nominal GDP.

Real GNI rose 3.1% quarter on quarter, greatly outperforming GDP growth of 0.6%, thanks to the surge in real trade gains from KRW 38.7 trillion to KRW 58.5 trillion amid improvement of trade terms.

dlektha0319@korea.kr