Semiconductors drive regional growth gap as North Chungcheong surges 11.9%, South Jeolla contracts 2.8%

Regional economic growth diverged sharply in the second quarter of this year. North Chungcheong Province, buoyed by rising semiconductor and electronic component output, saw its real gross regional domestic product grow 11.9 percent from a year earlier. South Jeolla Province, by contrast, contracted 2.8 percent as chemical and petroleum refining production declined.

National GRDP expanded 3.7 percent from the same period a year ago, according to preliminary second-quarter data released by the Ministry of Statistics on Tuesday. Of the country's 17 cities and provinces, 12 recorded growth, four contracted and Jeju showed no change.

North Chungcheong Province posted the highest growth rate, with GRDP expanding 11.9 percent — its second consecutive quarter of double-digit growth. Mining and manufacturing output in the province surged 22.4 percent, driven by semiconductors, electronic components and electrical equipment.

Gyeonggi Province also grew strongly, with GRDP up 5.9 percent as mining and manufacturing output rose 11.5 percent and services output gained 2.5 percent. Seoul's GRDP increased 5.5 percent, supported by a 6.0 percent rise in services output. The Greater Seoul metropolitan area as a whole grew 5.2 percent, outpacing the national average.

South Jeolla Province recorded the steepest decline nationally, with GRDP falling 2.8 percent. Mining and manufacturing output dropped 6.6 percent while agricultural, forestry and fisheries output fell 4.8 percent. Daejeon contracted 2.0 percent, with manufacturing output down 9.5 percent and construction output down 11.9 percent. Ulsan and Gangwon Province also shrank, by 1.0 percent and 0.4 percent, respectively.

By region, the Greater Seoul metropolitan area and the Chungcheong region led with growth rates of 5.2 percent and 5.0 percent, respectively. The Daegyeong region grew 2.0 percent and the Dongnam region 1.1 percent. The Honam region was flat overall, as growth in Gwangju and North Jeolla Province was offset by South Jeolla Province's contraction.

The quarterly GRDP figures are experimental statistics compiled to provide a rapid read on regional economic conditions. The Ministry of Statistics said quarterly GRDP and GDP do not necessarily align due to differences in underlying data and estimation methods, and that the figures are subject to revision.