AI-driven export boom pushes South Korea’s Q1 economic growth beyond expectations

Golden Ten Data reported on April 23 that the Bank of Korea stated on Thursday that global demand for artificial intelligence technology is driving export growth, with the South Korean economy rebounding strongly at the start of the year. In the first quarter of this year, gross domestic product grew by 1.7% quarter-on-quarter, reversing the contraction seen in the fourth quarter of 2025 and marking the fastest pace of growth since the third quarter of 2020. This figure exceeded the general expectation of 0.9% in institutional surveys, and even surpassed the most optimistic forecasts. Data show that chip exports in the first quarter rose by 139.1% year-over-year, with the growth rate more than doubling compared to the previous quarter; overall export growth each month hit the highest rates since 2021. Construction investment and equipment investment grew by 2.8% and 4.8% respectively. However, risks remain for the outlook of the South Korean economy, given its unstable growth momentum in recent quarters. Consumer confidence fell in March to a ten-month low, as the Iran war cast a shadow over prospects for both growth and prices.