The central bank attributes the decline to the effect of the first quarter's strong growth, slowing domestic consumption, and a sharp increase in imports.
The fall in real gross domestic product (GDP) for the April-June period came after 1.3 percent growth in the first quarter, which set a high benchmark for comparison.
This marks the first negative growth on a quarterly basis since the fourth quarter of 2022 when Asia's fourth-largest economy shrank by 0.5 percent.
On an annual basis, the nation's GDP expanded by 2.3 percent, compared with 3.3 percent growth in the first quarter.
Exports rose by 0.9 percent from the previous quarter, driven by automobiles and chemical products. However, imports grew at a faster rate of 1.2 percent, mainly due to increased oil and petroleum products, reducing the contribution of net exports to overall growth.
Government spending increased 0.7 percent, while private consumption declined 0.2 percent. Facility investment and construction investment declined 2.1 percent and 1.1 percent, respectively.
By sector, agriculture, forestry, and fishing saw the highest growth at 5.4 percent, while manufacturing grew by 0.7 percent. The construction sector saw a sharp 5.4 percent decline.
Services remained stagnant, with a 6.4 percent growth in transportation offset by sluggishness in the information and communications, retail and hospitality sectors.
The real gross domestic income (GDI) growth for the second quarter fell by 1.3 percent from the previous quarter.
reporter
Kim Joo-heon
jhkim123@ajunews.com
