SEOUL / MENA Newswire / – South Korea’s economy expanded 1.8% in the first quarter of 2026 from the previous quarter, revised data from the Bank of Korea showed. The reading topped the earlier estimate of 1.7%. Gross domestic product also rose 3.8% from a year earlier. That was higher than the advance estimate of 3.6%. The figures showed a strong rebound in Asia’s fourth largest economy after a weak final quarter of 2025.
Exports drove much of the increase in South Korea GDP. Shipments rose 5.9% from the previous quarter, led by semiconductors and other information technology products. Imports increased 3.9% in the same period. The export gain showed continued strength in key Korean manufacturing sectors. South Korea remains a major producer of memory chips, electronics, vehicles and industrial goods.
Domestic demand also added to first quarter growth. Private consumption rose 0.6%, helped by higher spending on goods and services. Facility investment climbed 6.6%, supported by machinery and transportation equipment. Construction investment increased 1.4% as building work and civil engineering activity grew. Government consumption fell 0.4%, making it the main weaker component in the expenditure data.
Exports lift quarterly growth
The revised GDP report placed the first quarter above the advance figures released in April. The Bank of Korea had first estimated growth at 1.7% from the prior quarter and 3.6% from a year earlier. The latest data lifted both measures by 0.1 and 0.2 percentage point, respectively. The upgrade confirmed stronger output across exports, investment and household spending during the January to March period.
South Korea’s economy had contracted 0.1% in the fourth quarter of 2025, based on revised data. The first quarter result marked a clear shift from that decline. The annual pace also accelerated from 1.6% in the previous quarter. The GDP data cover real output, which removes price changes from the calculation. This makes the figures a key measure of the country’s actual economic activity.
Investment and spending strengthen
The first quarter figures gave a detailed view of South Korea’s growth mix. Exports remained the largest positive driver among major demand categories. Facility investment posted the sharpest quarterly gain. Private consumption grew at a moderate pace. Construction also increased after support from both building and civil engineering. The fall in government consumption offset part of those gains but did not prevent overall expansion.
The data add to economic indicators watched by businesses, investors and policy officials. South Korea is closely tracked because of its role in global trade and technology supply chains. Its semiconductor exports feed into electronics, data centers and industrial production worldwide. The Q1 2026 GDP revision showed stronger growth than first reported, with exports, investment and consumer spending all contributing to the quarterly expansion.