SEOUL, April 23 (Xinhua) -- South Korea's real gross domestic product (GDP), adjusted for inflation, grew 1.7 percent in the first quarter compared to the previous quarter due to soaring semiconductor exports and investment recovery, central bank data showed Thursday.
The seasonally-adjusted real GDP marked the fastest growth in five and a half years since the third quarter of 2020, rebounding after contracting 0.2 percent in the fourth quarter of last year, according to the Bank of Korea (BOK).
The first-quarter figure was higher than the 0.9 percent increase estimated by the BOK in February.
Despite the Middle East conflict, the Asian country's export turned around as a result of surging global demand for locally-made chips used for artificial intelligence (AI) chipsets.
Export, which accounts for about half of the export-driven economy, spiked 5.1 percent in the January-March quarter from three months earlier after retreating 1.7 percent in the previous quarter.
Imports rose 3 percent in the first quarter on a quarterly basis amid higher demand for machinery and equipment.
Facility investment swung to a 4.8 percent expansion in the first quarter from a reduction of 1.7 percent in the prior quarter.
Construction investment bounced back to a 2.8 percent growth in the first quarter, reversing the previous quarter's drop of 3.5 percent.
Private consumption, another growth engine of the South Korean economy, advanced 0.5 percent on quarter in the first quarter, faster than a gain of 0.3 percent in the prior quarter.
Fiscal spending added 0.1 percent in the first quarter after mounting 1.3 percent in the fourth quarter of last year.
Earlier this month, the National Assembly passed the supplementary budget bill worth 26.2 trillion won (about 17.7 billion U.S. dollars) to bolster consumer spending and support people's livelihood amid concerns about an economic slump, triggered by the Middle East tensions.
The Ministry of Economy and Finance said that it planned to exert all-out efforts to buffer the economic impact of the Middle East conflict by expediting the execution of the extra budget and implementing additional measures.
The BOK left its benchmark interest rate unchanged at 2.50 percent after lowering it by 25 basis points in February and May 2025.
By industry, the seasonally-adjusted production among manufacturers climbed 3.9 percent in the first quarter from three months earlier, shifting to an upturn from a slide of 1.5 percent in the previous quarter.
Output in the construction industry gained 3.9 percent, and production in the agriculture, fishery and forestry sector swelled 4.1 percent.
Output in the service industry rose 0.4 percent thanks to an upturn in the wholesale and retail, the eatery and lodging, and the culture sectors.
Real gross domestic income jumped 7.5 percent in the January-March quarter on a quarterly basis after increasing 1.6 percent in the previous quarter. ■
