Demand for artificial intelligence drives export recovery, South Korea's GDP grows significantly.

Driven by the global demand for artificial intelligence technology, South Korea's economy rebounded strongly in the beginning of the year. Data released by the Bank of Korea on Thursday showed that South Korea's GDP grew by 1.7% in the first quarter of this year. This data reversed the economic contraction trend in the fourth quarter of 2025, achieving the fastest growth since the third quarter of 2020. The data far exceeded the market's expected average of 0.9% from media surveys, even surpassing all optimistic forecasts. The data showed that chip exports surged by 139.1% year-on-year, more than double the growth rate from the previous quarter; overall export volumes reached a monthly growth rate not seen since 2021. Private consumption increased by 0.5% compared to the previous quarter's 0.3% growth; government spending growth slowed to 0.1%. Construction investment and facility investment rose by 2.8% and 4.8% respectively compared to the previous quarter. Despite significant economic recovery, the growth trend over the past few quarters has been erratic, and the future economy still faces many uncertainties and risks. Due to the impact of the Middle East-Iran situation, economic growth and inflation prospects are under pressure, with South Korea's consumer confidence index falling to a nearly 10-month low in March.