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South Korea's GDI-GDP Growth Gap Hits Record 9.4% in Q1 as Semiconductor Prices Surge 92.5%

2026-07-19 03:09:20

According to South Korea's central bank (BOK), released July 19, the gap between real Gross Domestic Income (GDI) and Gross Domestic Product (GDP) growth hit a record high of 9.4 percentage points in the first quarter of 2026. Real GDP expanded 3.8% year-over-year, while GDI surged 13.2%, marking the largest divergence since records began in 1960. The BOK attributed the improvement in trade terms to a 92.5% surge in semiconductor prices, with IT sectors contributing 73.4% of export price gains. This contrasts with previous trade improvements driven primarily by falling import prices during oil price declines.

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