South Korea posted the fastest economic growth among major economies in the first quarter, central bank data released May 12 showed, underscoring the country’s rebound on the back of booming semiconductor exports and stronger corporate earnings.
The country’s real gross domestic product expanded 1.694% from the previous quarter, according to the Bank of Korea, placing it first among 22 economies that had reported preliminary first-quarter figures as of the latest update.
The result outpaced other fast-growing Asian economies including Indonesia, which recorded 1.367% growth, and China at 1.3%. Those were the only three economies to post quarterly growth above 1%.
Finland ranked next with growth of 0.861%, followed by Hungary at 0.805% and Spain at 0.614%. The U.S. economy expanded 0.494% during the same period, while Canada grew 0.4% and Germany rose 0.334%.
Several economies contracted in the quarter. France slipped 0.005%, while Sweden, Lithuania and Mexico also posted declines. Ireland recorded the steepest drop, shrinking more than 2%.
The sharp rebound marked a turnaround from the final quarter of last year, when South Korea’s economy contracted 0.161% and ranked near the bottom among major economies tracked by the central bank.
If the ranking holds after additional countries release data, it would mark South Korea’s strongest quarterly performance relative to peers since the first quarter of 2010, when a recovery in global trade fueled exports of semiconductors and automobiles following the financial crisis.
The latest expansion was again driven largely by exports.
Outbound shipments rose 5.1% in the first quarter, led by information-technology products including semiconductors. Net exports contributed 1.1 percentage points to overall economic growth.
The country’s largest chipmakers also reported stronger-than-expected earnings. Samsung Electronics posted quarterly operating profit of roughly $4.2 billion, while SK hynix reported about $2.8 billion.
Following the stronger-than-expected GDP figures, economists and research institutes moved to revise growth forecasts upward. The Korea Institute of Finance raised its 2026 growth outlook to 2.8% from 2.1%.
The Bank of Korea is scheduled to release updated economic forecasts on May 28.
Still, economists cautioned that momentum could weaken in the second quarter because of base effects and geopolitical risks tied to the conflict in the Middle East.
Government officials said last month that growth would likely moderate after the unexpectedly strong first-quarter performance.
South Korea experienced a similar pattern in 2024, when first-quarter growth sharply exceeded expectations before the economy slipped back into contraction the following quarter.
