Greater Seoul area and Chungcheong provinces lead growth; Honam region stagnates

Mining and manufacturing rebound drives nationwide GRDP gain of 3.8%

SK hynix headquarters in Icheon, Gyeonggi Province [Yonhap]
SK hynix headquarters in Icheon, Gyeonggi Province [Yonhap]

A semiconductor-led manufacturing recovery determined which regions thrived and which struggled in the first quarter of this year. North Chungcheong Province and Gyeonggi Province, where semiconductor output surged, posted the country's highest growth rates, while South Jeolla Province and South Chungcheong Province contracted as manufacturing and construction remained weak.

South Korea's real gross regional domestic product rose 3.8 percent in the first quarter compared with the same period last year, according to data the Ministry of Statistics released Monday. GRDP measures the value added produced within a region. The ministry noted that this quarterly release is an experimental dataset published for the first time to provide a faster read on regional economic conditions.

Among the country's broad economic zones, the Greater Seoul metropolitan area recorded the highest growth at 5.2 percent. The Chungcheong region followed at 4.2 percent, the Daegyeong region at 2.3 percent and the Dongnam region at 2.0 percent. The Honam region was flat at 0.0 percent.

Growth in the Greater Seoul and Chungcheong regions was driven by a recovery in manufacturing, including semiconductors. Mining and manufacturing output in the Greater Seoul area expanded 12.1 percent, while the service sector grew 3.8 percent. The Chungcheong region saw mining and manufacturing rise 5.4 percent and services grow 3.4 percent.

At the city and province level, North Chungcheong Province led the nation with growth of 13.8 percent, fueled by a 25.8 percent surge in mining and manufacturing as semiconductor, electronic component and electrical equipment production all increased. Gyeonggi Province grew 6.2 percent on higher output of semiconductors, electronic components and textile products, while Seoul expanded 4.8 percent as services and construction recovered. Ulsan (4.4 percent), Sejong (3.2 percent) and North Gyeongsang Province (2.3 percent) also outpaced the national average.

South Jeolla Province and South Chungcheong Province both contracted, falling 0.8 percent and 0.5 percent, respectively. South Jeolla was weighed down by weakness in utilities and other industries as well as construction, while South Chungcheong suffered a manufacturing contraction driven by declining output of semiconductors, electronic components and automobiles. Gangwon Province held steady at the prior-year level as service sector growth offset a slump in construction.

Across industries, mining and manufacturing led the national expansion with growth of 7.1 percent, reflecting higher semiconductor, electronic component and electrical equipment production in most regions, including the Greater Seoul area (12.1 percent), the Daegyeong region (7.4 percent) and the Chungcheong region (5.4 percent). The service sector posted positive growth in every region, rising 3.2 percent nationally, led by wholesale and retail trade, finance and insurance, public administration, and health and welfare.

Construction, however, continued to drag on the economy, contracting 3.9 percent nationwide. Declines were widespread, with the Daegyeong region falling 11.1 percent, Gangwon Province 10.2 percent, South Chungcheong Province 7.2 percent and Gyeonggi Province 6.7 percent.

The Ministry of Statistics said the quarterly GRDP figures are an experimental dataset introduced to track regional economic trends more quickly, adding that it plans to evaluate the data's quality and utility before seeking approval to designate it as an official national statistic.


fact0514@heraldcorp.com