South Korean Economy Surges in Q1 on AI-Driven Exports, Exceeding Forecasts Amid Risks

Published: Apr 23, 2026 09:08

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The Bank of Korea said on Thursday that global demand for AI technology drove export growth, and the South Korean economy rebounded strongly at the beginning of the year. GDP grew 1.7% QoQ in Q1, reversing the contraction in Q4 2025 and marking the fastest growth since Q3 2020. The figure exceeded the consensus expectations of 0.9% in institutional surveys and even surpassed the most optimistic forecasts. Data showed that chip exports were up 139.1% YoY in Q1, with the growth rate more than doubling from the previous quarter, while overall monthly export growth hit its highest level since 2021. Construction investment and equipment investment rose 2.8% and 4.8%, respectively. However, risks remain for the outlook of the South Korean economy, which has seen unsteady growth momentum in recent quarters. Consumer confidence fell to a 10-month low in March as the Iran war cast a shadow over the growth and price outlook.

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