Anchor: The South Korean economy grew just zero-point-seven percent in the second quarter, raising concerns of an extended period of low growth. Real gross domestic income fell for the first time in more than five years.
Our Kim In-kyung has more.

Report: The South Korean economy grew zero-point-seven percent in the second quarter from the previous quarter.

According to preliminary data from the Bank of Korea on Tuesday, the country’s real gross domestic product(GDP) stood at 375-trillion-40-point-one billion won in the April to June period.

It marks the third consecutive on-quarter expansion of less than one percent, raising concerns that the country will be further mired in a low economic growth trap.

Nevertheless, second-quarter growth accelerated slightly from the zero-point-five percent rise in the previous quarter as investment in the construction sector remained positive while domestic consumption and exports turned around.

Although construction investment rose two-point-nine percent, the rate of increase was less than half of that in the first quarter.

Private consumption grew zero-point-nine percent. Helped by an extension of consumption tax cuts, local sales of domestic cars jumped 16-point-eight percent during the quarter.

Exports inched up zero-point-nine percent, led by higher shipments of semiconductors and petrochemical products. Imports rose one-point-nine percent.

Real gross domestic income(GDI) fell zero-point-four percent. It was the first decline in five years and three months since dropping zero-point-three percent in the first quarter of 2011.

The central bank attributed the decrease to higher import prices of some products due to a rise in international oil prices. It also explained that the fall comes on the heels of a relatively high three-percent GDI growth in the first quarter.
Kim In-kyung, KBS World Radio News.