South Korea's Q2 GDP Grows 3.7% YoY; GDI Surges to 38-Year High at 15.6%

According to South Korea's Ministry of Economy and Finance, on July 23, the country achieved 3.7% year-over-year real GDP growth in the second quarter, making the achievement of a full-year 3% growth target increasingly likely. The ministry noted that Q2 real gross domestic income (GDI) surged 15.6% year-over-year, marking the highest growth rate since the first quarter of 1988—the result of improved trade conditions driven by semiconductor price gains.

The ministry also projected that South Korea's per capita GNI could exceed $40,000 for the first time in history. However, officials flagged ongoing downside risks including Middle East tensions, potential closure of the Strait of Hormuz, and threats to Red Sea shipping, warning of possible international oil price increases and supply chain disruptions.