S. Korean economy up 0.5 pct in Q2: BOK

Bank of Korea head, Lee Ju-yeol, speaks at a press briefing / Yonhap photo

By Joel Lee

South Korea’s economy expanded a seasonally adjusted 0.5 percent in the second quarter (Q2) from the first (Q1), supported by manufacturing growth, revised data by the Bank of Korea (BOK) showed Thursday.

The figure is slightly lower than the July estimate of 0.6 percent growth. Korea’s gross domestic product (GDP) expanded 3.5 percent on-year in the second quarter, boosted by manufacturing which saw strong exports of chemical and technology products.

The service sector posted a 0.6 percent on-quarter growth with healthcare and social businesses offsetting sluggish restaurant and accommodation segments.

Consumer spending slipped 0.3 percent, logged by the mid-April Sewol ferry disaster that has dampened consumer sentiments.

Facility investment rose 1.1 percent, turning around the 1.9 percent on-quarter decline from the previous quarter.