Seoul, June 5 || The South Korean economy contracted 0.2 per cent in the first quarter of this year, unchanged from an earlier estimate, central bank data showed Thursday, due mainly to a domestic political crisis and uncertainties stemming from U.S. President Donald Trump's administration's aggressive tariff scheme.
The country's real gross domestic product (GDP) -- a key measure of economic growth -- contracted 0.2 percent in the January-March period from three months earlier, which marked the first negative growth in nine months, according to the preliminary data from the Bank of Korea (BOK).
The South Korean economy had expanded 1.3 percent in the first quarter of 2024 but slipped into contraction in the second quarter with a 0.2 percent decline before posting 0.1 percent growth in both the third and fourth quarters, reports news agency.
Exports declined 0.6 percent from three months earlier in the first quarter due mainly to slower shipments of chemicals, machinery and equipment.
Facility investment fell 0.4 percent on-quarter, marking its weakest performance since the first quarter of 2024.
Construction investment plunged 3.1 percent and private spending fell 0.1 percent in the first quarter due largely to weakening demand for services.
The unexpected negative growth came as former President Yoon Suk Yeol's imposition of martial law on Dec. 3 and the subsequent political chaos dampened domestic demand.