'Semiconductor Effect' Drives 12% GRDP Growth in North Chungcheong in Q2...Second Highest on Record

Driven by strong performance in the semiconductor sector, the growth rate of Gross Regional Domestic Product (GRDP) in North Chungcheong Province reached an all-time high in the first quarter and recorded the second-highest level in history in the second quarter. In addition, the surge in stock trading activity led to the largest-ever increase in Seoul's GRDP.

According to the “Provisional Estimates of Real Gross Regional Domestic Product for the Second Quarter of 2026,” released by the Ministry of Data and Statistics on September 29, the nationwide GRDP expanded by 3.7% from the previous year, thanks to concurrent growth in the mining·manufacturing and service sectors.

For the mining·manufacturing sector, demand soared for memory semiconductors used in artificial intelligence (AI) servers, and strong orders for ships contributed to year-on-year growth of 6.5%. The service sector grew by 3.4% compared to a year ago, mainly due to increased stock trading volume and rising wholesale sales of semiconductor-related machinery and equipment. In contrast, construction sector output declined by 3.5%, as civil engineering and residential building construction contracted despite expansion in projects such as semiconductor factories.

By region, 12 provinces, including North Chungcheong and Gyeonggi, saw their GRDP rise. Notably, North Chungcheong Province, home to an SK hynix production facility, posted a rapid 11.9% increase in GRDP. This was the second highest quarterly growth in history, following the first quarter’s 13.6%. The 22.4% jump in the province’s mining·manufacturing sector stemmed from expanded production of semiconductors, electronic components, and electrical equipment. This marked the second largest increase in mining·manufacturing output after the first quarter’s 25.1% surge.

Seoul’s GRDP grew by 5.5% due to increased output from finance·insurance, wholesale·retail sectors, and rising stock trading value. This represents the sharpest growth since related statistics began to be compiled in 2016. Seoul’s services sector also rose 6.0%, the highest increase since the statistics were first recorded.

In contrast, four regions—South Jeolla (-2.8%), Daejeon (-2.0%), Ulsan (-1.0%), and Gangwon (-0.4%)—experienced declines in output.

South Jeolla experienced the largest drop nationwide, as a contraction in mining·manufacturing stemming from reduced production of chemicals and refined petroleum products significantly impacted the region. Ulsan’s GRDP also declined, with sluggish performance in the petroleum refining and automobile sectors. Meanwhile, Jeju’s GRDP remained flat with no notable change.

This content was produced with the assistance of AI translation services.