In the second quarter of this year, 12 out of 17 cities and provinces in South Korea reported an increase in their real Gross Regional Domestic Product (GRDP) compared to the same period last year. While regions like Chungbuk and Gyeonggi benefited from growth in manufacturing output, areas such as Jeonnam and Daejeon experienced declines in both manufacturing and construction, leading to a decrease in GRDP.
According to the National Data Agency's report on the '2026 Second Quarter Real Gross Regional Domestic Product' released on September 29, the national real GRDP increased by 3.7% year-on-year. Chungbuk recorded the highest growth rate at 11.9%, followed by Gyeonggi at 5.9%, Seoul at 5.5%, Chungnam at 3.3%, and Sejong at 2.9%.
Conversely, Jeonnam saw a 2.8% decline in GRDP, the largest drop among the regions. Daejeon and Ulsan also reported decreases of 2.0% and 1.0%, respectively. Jeju's GRDP remained stable compared to the same period last year.
Regionally, the GRDP in the Seoul metropolitan area increased by 5.2%. The Chungcheong region followed with a 5.0% increase, while the Daegu-Gyeongbuk area saw a 2.0% rise, and the southeastern region experienced a 1.1% increase. The Honam region remained unchanged.
In the Seoul metropolitan area, Gyeonggi's manufacturing output surged by 11.5%, significantly contributing to the overall GRDP growth. The service sector also grew by 2.5%, with Seoul's service production increasing by 6.0%, driven by growth in finance, insurance, and business services.
The Chungcheong region saw substantial growth in Chungbuk, where mining and manufacturing output rose by 22.4%. Production in semiconductors, electronic components, and electrical equipment increased. Chungnam's mining and manufacturing output grew by 6.0%, and Sejong also saw increases in mining, manufacturing, and service production, resulting in a 2.9% rise in GRDP.
Daejeon, however, faced a 9.5% decline in mining and manufacturing output, along with an 11.9% drop in construction, leading to an overall GRDP decrease of 2.0%.
Nationally, manufacturing output increased by 6.5%. Chungbuk led with a 22.4% growth rate, followed by Gyeonggi at 11.5%, Sejong at 9.8%, and Gwangju at 9.3%. In contrast, Daejeon, Jeonnam, and Ulsan reported declines of 9.5%, 6.6%, and 2.7%, respectively, with Jeonnam's decrease attributed to reduced production of chemical products and petroleum refining.
Construction output fell by 3.5% nationwide. While the Seoul metropolitan area saw a slight increase of 0.2%, the Chungcheong region experienced a 6.3% decline, Honam a 4.9% drop, Daegu-Gyeongbuk a 13.2% decrease, and the southeastern region a 4.8% decline. Among cities and provinces, Gyeongbuk reported the largest decrease at 13.9%, followed by Daejeon at 11.9% and Daegu at 11.6%. In contrast, Chungbuk saw a 5.2% increase, Seoul a 2.5% rise, and Gyeonggi a 0.4% increase.
All cities and provinces reported growth in the service sector, with national service production increasing by 3.4%. Seoul recorded the highest growth rate at 6.0%, followed by Sejong at 4.1% and Ulsan at 3.3%. However, Gangwon, Jeju, and Chungbuk saw modest increases of 0.5%, 0.7%, and 0.8%, respectively.
The national real GRDP growth rate improved from 0.6% in the second quarter of last year to 3.8% in the first quarter of this year, followed by 3.7% in the second quarter. The growth rates varied by region, reflecting differences in manufacturing output.
* This article has been translated by AI.
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