Corona 19 shocked the Korean economy in the second quarter of this year by more than 3% from the first quarter.

The Bank of Korea announced today (on the 23rd) that the real GDP growth rate (breaking news) in the second quarter of this year was -3.3% compared to the previous quarter.

In addition to the first quarter (-1.3%), it was not only negative growth for two consecutive quarters, but -3.3% was the lowest in 22 years and 3 months since the first quarter of 1998 (-6.8%) during the foreign exchange crisis.

It grew by -2.9% compared to the same period last year.

This is the lowest level in 21 years and 6 months since the fourth quarter of 1998 (-3.8%).

Exports, the main pillar of our economy, were hit by the global economic downturn following Corona19.

Exports plunged 16.6%, the lowest level in 56 years and 6 months since the fourth quarter of 1963 (-24%).

Imports also fell 7.4%, mainly on crude oil.

Facility investment and construction investment also decreased by 2.9% and 1.3%, respectively, as investment in transportation equipment and building construction contracted.

However, private consumption increased 1.4% mainly from durable goods (cars, home appliances, etc.), thanks to the national emergency disaster subsidy and individual consumption tax cuts.

Government consumption also increased by 1% with increased spending on goods.

Looking at production by industry, manufacturing and agriculture, forestry and fisheries decreased by 9.7%, and service industry decreased by 1.1% due to sluggish wholesale, retail, lodging, and transportation industries.

Real gross income (GDI) also reversed, but thanks to improved trade conditions, the decline (-2%) was smaller than the real GDP growth rate (-3.3%).