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Korea's economic growth slows in Q2 on weak exports: BOK

South Korea's economic growth slowed in the April-June period from a quarter earlier due to decreased exports, central bank data showed Thursday.

In the second quarter, the country's gross domestic product increased 0.6 percent, down from the previous quarter's 1.1 percent gain, the Bank of Korea said in a statement.

Exports -- one of the major pillars for the Korean economy -- fell 3 percent in the June quarter compared with three months earlier and declined 0.1 percent from the previous year, which weighed on Asian's fourth-biggest economy, the statement said.

Bank of Korea Gov. Lee Ju-yeol (Yonhap)
Bank of Korea Gov. Lee Ju-yeol (Yonhap)

"A decline in shipments of transportation equipment, petrochemicals and chemical products drove down overall exports. But overseas demand for semiconductors remained strong in the second quarter," it said.

Improved consumer sentiment under the Moon Jae-in government supported Asia's fourth-biggest economy. Consumers spent more on durable goods, such as home appliances and handsets while spending less on clothes and shoes, the BOK said.

The Korean economy grew 2.7 percent in the second quarter vis-a-vis the year before, down from 2.9 percent gains posted in the first three months of this year.

Gross domestic income remained unchanged from the previous quarter's 2.6 on-quarter expansion, it said. (Yonhap)