South Korea's economy expands 2.7 percent in 2Q

By Youkyung Lee, Associated Press | Posted - Jul. 27, 2017 at 4:01 a.m.



This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

SEOUL, South Korea (AP) — The Bank of Korea said Thursday that South Korea's economy grew at a 2.7 percent annual pace during the April-June quarter as gains in capital expenditures and consumer spending offset lower exports.

The central bank said in a preliminary reading that Asia's fourth-largest economy saw lower exports but a big jump in capital spending and improved consumer spending supported growth. The economy grew 2.9 percent in the previous quarter.

On a quarterly basis, the economy grew 0.6 percent from the January-March period.

Earlier this week, the government upgraded its forecasts for growth in this year to 3 percent, citing strong exports led by semiconductor companies that sharply increased capital spending. If achieved, the growth rate would be the highest rate in three years.

President Moon Jae-in's administration plans $10 billion in stimulus to create jobs and improve the country's social safety nets, to help revive lagging consumer demand in the mostly export-driven economy.

Moon, who took office in May, has vowed to help support household income during its tenure by sharply increasing minimum wage and narrowing gaps between full-time regular jobs and irregular work. While big manufacturers like Samsung Electronics post record profits, incomes of individual Koreans have lagged while concern grows over unemployment and poverty.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Youkyung Lee

    SIGN UP FOR THE KSL.COM NEWSLETTER

    Catch up on the top news and features from KSL.com, sent weekly.
    By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Policy.

    KSL Weather Forecast