South Korea 1Q GDP unchanged year-on-year, revised from 0.1% decrease

South Korea 1Q GDP unchanged year-on-year, revised from 0.1% decrease

South Korea's first quarter (1Q) gross domestic product (GDP) remained unchanged year-on-year, according to the latest revision. This marks a significant shift from the previously reported 0.1% decrease. The revised figures highlight the country's economic resilience in the face of global trade uncertainties and domestic political changes.

The revision comes on the heels of South Korea's presidential election, which saw Lee Jae-myung, the leader of the Democratic Party, secure a decisive victory. Lee's election has brought new optimism to the country's economic landscape, with promises of corporate reform, increased investment in AI and semiconductors, and measures to curb capital flight through crypto reforms.

The economic data also coincides with a period of heightened trade tensions globally. The looming deadline for trade proposals with the United States has kept investors on edge, with regional currencies such as the won and the yuan experiencing volatility. South Korea's key sectors, including chips and autos, are heavily exposed to global trade, making the country's ability to negotiate favorable trade deals with the U.S. a critical factor for market sentiment.

Despite the uncertainty surrounding trade negotiations, South Korean shares touched their highest level since August 2024 following Lee's victory. The country's benchmark stock index, KOSPI, jumped 2.6% to its highest level since early August 2024, while the won rose 0.6%. This surge in investor confidence reflects optimism around Lee's ability to deliver on his economic promises and navigate the complex trade landscape.

The revised GDP figures underscore the importance of Lee's economic policies in shaping South Korea's economic trajectory. As he begins his term, the focus will be on his ability to implement these policies effectively and maintain market stability amidst global economic uncertainties.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L3N3S70H0:0-south-korea-shares-surge-post-election-asian-currencies-waver-on-trade-concerns/
[2] https://decrypt.co/323642/crypto-reform-lee-jae-myung-south-koreas-presidency