South Korean Economy Returns to Growth in First Quarter
South Korean economy likely grew 1.0% in the first quarter driven by record chip exports. Economists warn that Middle East tensions may impact future growth.
South Korea is expected to have returned to economic growth in the first quarter of 2026, driven by a surge in semiconductor exports and resilient domestic consumption. According to a Reuters poll of economists, Asia's fourth-largest economy likely expanded by 1.0% on a seasonally adjusted basis between January and March, rebounding from a contraction in the final quarter of 2025. On a year-on-year basis, gross domestic product is forecast to have grown 2.7%, a significant acceleration from the 1.6% recorded in the previous period.
The recovery is largely attributed to the technology sector, where exports surged in March after modest gains earlier in the year. Semiconductor exports reached a record $32.83 billion during the month, accounting for nearly 40% of the nation's total monthly exports. This growth was fueled by rising memory chip prices and robust demand for servers linked to artificial intelligence investments.
