According to the National Data Agency's preliminary report on the first quarter of 2026, the national GRDP increased by 3.8% compared to the same period last year, marking the highest growth rate since the fourth quarter of 2021.
The region with the most significant growth was the Seoul area, which saw a 5.2% increase from a year earlier, followed by the Chungcheong region at 4.2%, the Daegu-Gyeongbuk region at 2.3%, and the Southeast region at 2.0%. In contrast, the Honam region's growth remained similar to the previous year.
The Seoul area benefited from strong performance in mining and manufacturing (12.1%) as well as services (3.8%), contributing to its overall growth. Notably, the mining and manufacturing sectors (14.2%) were the primary drivers of this increase. The Chungcheong and Daegu-Gyeongbuk regions also reported robust mining and manufacturing activity. In Chungcheong, growth was led by North Chungcheong (13.8%), where mining and manufacturing surged by 25.8% compared to the same period last year. However, South Chungcheong experienced a decline in construction by 7.2%, and its mining and manufacturing growth rate shrank to 4.1%.
In contrast, the Honam region recorded a growth rate of just 0.0%, mirroring the first quarter of the previous year. The growth rate for mining and manufacturing was a mere 0.1%, while the service sector saw a 1.4% increase. However, construction in the region fell by 1.2%. The downturn in the manufacturing sector, a key industry for the region, has led to an overall decline in growth, influenced by the ongoing Middle East conflict.
By industry, mining and manufacturing saw increases across all regions, including the Seoul area (12.1%), Daegu-Gyeongbuk (7.4%), and Chungcheong (5.4%), driven by production in semiconductors, electronic components, and electrical equipment. However, Daejeon (-7.5%), South Chungcheong (-4.1%), and North Jeolla (-2.8%) experienced declines in production of electrical equipment, semiconductors, electronic components, and automobiles.
The service sector showed growth in all regions, particularly in retail, public administration, and health and welfare. Growth rates varied by region, with the Seoul area at 3.8%, Chungcheong at 3.4%, Southeast at 2.7%, Daegu-Gyeongbuk at 1.9%, and Honam at 1.4%.
Construction experienced a downturn across all regions, decreasing by 3.9% compared to the same quarter last year. The Daegu-Gyeongbuk region saw the largest decline at -11.1%, followed by the Seoul area at -3.5%, Chungcheong at -3.4%, Southeast at -1.3%, and Honam at -1.2%.
A representative from the National Data Agency stated, "The Honam region is strong in manufacturing sectors such as petrochemicals, automobiles, and shipbuilding, which have a high proportion of industrial districts. When these related industries perform well, growth rates are favorable; however, current poor performance has led to reduced consumption and a slowdown in the service sector. There are various complex factors at play, but the impact of the Middle East conflict should also be considered."
* This article has been translated by AI.
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