Story perspectives

South Korea Q1 GDP hits 5-year high on chip boom

4/24/2026

Summary

South Korea GDP Surge

South Korea posted its strongest quarterly GDP growth in over five years, up 1.7 percent in Q1.
Bank of Korea data showed year-on-year growth of 3.6 percent, the fastest since Q3 2020.
Exports rose 5.1 percent and facility investment climbed 4.8 percent, driven by IT and memory-chip demand, Lee Dong-won said.
Samsung Electronics reported revenue of 133 trillion won and operating profit of 57.2 trillion won, while SK hynix posted operating profit of 37.61 trillion won.

Summary

Lee Caps Fuel

Consumer confidence fell in March to a ten-month low amid Iran war worries and higher energy prices.
Import prices rose sharply, the biggest jump in nearly three decades, pushing inflation above the Bank of Korea’s 2 percent target.
President Lee Jae-myung capped fuel prices and cut taxes to ease soaring petrol, diesel and kerosene costs.

Summary

South Korea GDP

Bond yields rose 8.8 basis points to 3.453% on Thursday, reflecting market reaction to the stronger-than-expected GDP.
The won stayed flat at 1,480.7 per dollar as of 0503 GMT, showing limited depreciation despite the growth surprise.
ING warned that energy-related supply disruptions could slow second-quarter growth, hurting petrochemical and other manufacturing sectors.
The Bank of Korea will revise its inflation outlook next month, moving away from the 2.2% projection for 2026.

History

Historical Context

South Korea's economy has evolved significantly since the 1960s, transitioning from a war-torn nation to a G20 powerhouse, achieving remarkable growth rates, including 4.0% in 2021. The tech sector, led by Samsung Electronics, exemplifies this transformation, with revenues reaching 236 trillion won. However, ongoing inflation and energy price challenges echo past economic pressures, necessitating strategic fiscal policies for sustained growth.

1 of 4

South Korea GDP Surge

South Korea posted its strongest quarterly GDP growth in over five years, up 1.7 percent in Q1.
Bank of Korea data showed year-on-year growth of 3.6 percent, the fastest since Q3 2020.
Exports rose 5.1 percent and facility investment climbed 4.8 percent, driven by IT and memory-chip demand, Lee Dong-won said.
Samsung Electronics reported revenue of 133 trillion won and operating profit of 57.2 trillion won, while SK hynix posted operating profit of 37.61 trillion won.

1 / 4