South Korea's nominal GDP posts fastest growth in 47 years

South Korea's nominal gross domestic product recorded its fastest annual growth in nearly 47 years in the second quarter of 2026, driven by robust exports and investment linked to artificial intelligence, local media reported Tuesday.

Nominal GDP surged 26.4% year-on-year in the April-June period, the strongest increase since the third quarter of 1979, when it rose 27.7%, Yonhap News Agency reported, citing preliminary data from the Bank of Korea.

Compared with the previous quarter, nominal GDP jumped 9.2%.

Real GDP, a key measure of economic growth, expanded 0.6% quarter-on-quarter and 3.7% from a year earlier, extending the economy's recovery after 3.8% annual growth in the first quarter.

Exports rose 1.3% from the previous quarter, supported by strong global demand for semiconductors, machinery and equipment.

Intellectual property investment climbed 3.4%, while facility investment increased 0.2%.

Private consumption grew 0.4%, though construction investment declined 0.1%.

Real gross national income rose 15.6% year-on-year, its sharpest increase since late 1988.

The central bank has raised its 2026 economic growth forecast to 3.3%, citing strong exports amid the continuing semiconductor supercycle.