South Korea's Q1 2026 GDP Rises 1.7% on Chip Exports

South Korea's economy surged in the first quarter of 2026, posting its strongest growth since the post-pandemic rebound of mid-2020, as robust exports of semiconductors offset subdued public spending, according to data released Thursday by the Bank of Korea.

Gross domestic product expanded by 1.7 percent from the previous quarter, surpassing the central bank's own forecast of 0.9 percent and a median estimate of 1.0 percent from economists. The figure represents the fastest quarterly increase for Asia's fourth-largest economy since the third quarter of 2020, when growth reached 2.2 percent amid recovery from pandemic disruptions. On a year-over-year basis, the economy grew 3.6 percent, up sharply from 1.6 percent in the fourth quarter of 2025 and exceeding projections of 2.7 percent.

The expansion was propelled by a 5.1 percent rise in exports, primarily driven by shipments of information technology components, including semiconductors critical for artificial intelligence infrastructure. Global demand for these chips has bolstered South Korea's export sector, underscoring the nation's key role in the international technology supply chain. Facility investment also rebounded...