The Bank of Korea reported that real GDP in the second quarter of 2026 expanded 0.6% from the previous quarter, beating the forecast of 0.2%, supported by strong exports, though slowing from the first quarter's 1.8% growth, which was the highest quarterly growth since the third quarter of 2020. Year-on-year, second-quarter GDP grew 3.7%, easing slightly from 3.8% in the first quarter. Central bank officials said the economy remains robust amid concerns over Middle East tensions and a high base effect, and expect full-year 2026 GDP to grow 3% if there is no contraction exceeding 0.1% in the final two quarters, which would mark the first time since 2021 that annual GDP reaches that level.