Seoul: South Korea's gross regional domestic product (GRDP) increased by 0.4 percent in the second quarter compared to the previous year. This growth was primarily driven by modest advancements in the manufacturing and service sectors, though it was significantly counterbalanced by a sharp decline in the construction sector, as revealed by government data on Friday.
According to Yonhap News Agency, the latest figures indicate an improvement from a 0.1 percent on-year increase in the first quarter. However, the growth rate has stayed below the 1 percent threshold for the second straight quarter. The mining and manufacturing sectors experienced a 2 percent on-year growth during this period, buoyed by robust semiconductor exports. South Korea exported a record US$73.3 billion worth of semiconductors in the first half of the year, marking an 11.4 percent increase from the previous year.
The service sector also saw a 1.2 percent on-year rise in output during the April-June timeframe, which is double the growth rate observed in the first quarter. This increase was supported by a recovery in the wholesale and retail industries.
Conversely, the construction sector saw a significant contraction, with the GRDP declining by 10.8 percent on-year. This marked the fifth consecutive quarter of a year-on-year decrease and the second consecutive quarter of a double-digit decline.