Capital Area and Chungcheong Grow on Semiconductor Boom, while Jeonnam Stagnates

National real gross regional domestic product (GRDP) for the first quarter of this year increased by the largest margin since the fourth quarter of 2021. However, while the Seoul Metropolitan Area and the Chungcheong region, driven by growth in advanced manufacturing such as semiconductors, led the expansion, some areas including Jeonnam showed weak performance, widening regional disparities. According to the National Data Agency, nationwide GRDP in the first quarter rose 3.8% from the same period last year. The Seoul Metropolitan Area increased 5.2%, and the Chungcheong region rose 4.2%, while the Daegyeong region and the Southeast region also climbed 2.3% and 2.0%, respectively. These regions were weighed down by weakness in construction, but overall growth was driven by increased output in mining and manufacturing as well as the service sector. In contrast, the Honam region saw sluggish construction and manufacturing, and the increase in services was small, leaving it essentially flat. By city and province, North Chungcheong and Gyeonggi recorded high growth rates, with North Chungcheong posting the highest growth rate ever on the back of the semiconductor cluster. Seoul showed growth as services, centered on finance and insurance, increased, while Jeonnam declined due to weak conditions in petrochemicals and shipbuilding.