South Korea’s economy expanded 0.6% in the second quarter from the previous three months, three times faster than the Bank of Korea’s (BOK) May forecast, strengthening expectations that annual growth could reach or exceed the government’s 3% target. Real gross domestic product rose 3.7% from a year earlier, following 3.8% growth in the first quarter, while real gross domestic income increased 15.6% as improved trading conditions raised the economy’s purchasing power.

Growth was more evenly distributed than in the first quarter. Domestic demand and net exports each contributed 0.3 percentage point, supported by gains in private consumption, services, manufacturing