South Korea avoids technical recession as GDP expands 0.6% in second quarter
On a year-over-year basis, the country's GDP rose 0.5%, up from 0% in the first quarter and a 0.4% expansion expected by economists in a Reuters poll.
South Korea is currently trying to close a trade deal with the U.S., failing that, the country's exports to the U.S. would be hit with a 25% tariff.
Exports of goods and services make up about 44% of South Korea's GDP in 2023, according to the latest figures from the World Bank, with the U.S. as its second-largest export market.
South Korean media outlet Yonhap reported that Seoul has ruled out changes to beef and rice imports as bargaining chips in tariff negotiations with the United States.
The BOK held rates in its previous monetary policy meeting on July 10, despite noting a stable inflation rate and forecasting low growth for the country, choosing to focus on financial stability.
Inflation in South Korea stood at 2.2% in June, just slightly above the BOK's 2% target.
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