South Korea’s economy posted its best quarterly performance in five years, with real GDP expanding 1.8% quarter-on-quarter in Q1 2026. That beat the advance estimate of 1.7%, according to data from the Bank of Korea.
The revision confirms that Asia’s fourth-largest economy has decisively snapped out of the 0.1% contraction recorded in Q4 2025, swinging to the most vigorous growth since Q1 2021.
Exports and business investment did the heavy lifting
Exports climbed 5.9%, propelled by global demand for semiconductors. Facilities investment surged 6.6%.
Private consumption was more muted, with households appearing cautious amid elevated borrowing costs and uncertainty about global trade conditions.
