GRDP Growth Hampered by Construction Slump
Gyeonggi and Seoul Up, Incheon Down in the Seoul Metropolitan Area
Amid the ongoing slump in the construction industry, real Gross Regional Domestic Product (GRDP) in the second quarter saw only a slight increase. Not only did the Honam region, which was hit hard by the downturn in construction, experience negative growth, but the Southeast and Chungcheong regions also recorded negative growth.
On the first day of the Serious Accidents Punishment Act enforcement, which allows for the punishment of management officials when serious accidents such as worker fatalities occur, the scene at an apartment construction site in Gyeonggi Province on the 27th. Photo by Kim Hyunmin kimhyun81@
According to the "Provisional Real Gross Regional Domestic Product for the Second Quarter of 2025" released by Statistics Korea on the 26th, among the nation's five major regions, only the Seoul Metropolitan Area (up 1.6%) and the Daegyeong region (up 0.1%) saw an increase in GRDP compared to the same period last year in the second quarter. The Honam region (down 2.0%), Southeast region (down 1.0%), and Chungcheong region (down 0.4%) all saw declines. Nationwide, GRDP increased by 0.4%.
In the Seoul Metropolitan Area, GRDP increased in industries such as services (up 1.8%) and mining and manufacturing (up 4.5%), but fell in construction (down 9.5%). In the Daegyeong region, mining and manufacturing (up 4.4%) and other industries including agriculture, forestry, and fisheries (up 0.7%) showed growth. In contrast, the Honam region saw declines in construction (down 15.6%) and mining and manufacturing (down 1.5%).
An official from Statistics Korea stated, "The construction industry continues to decline," adding, "Manufacturing has improved slightly thanks to robust exports of memory semiconductors and ships." The official further noted, "Service sector production has also improved slightly, driven by growth in financial and insurance services as well as information and communications."
By region, the Seoul Metropolitan Area saw an increase in GRDP due to higher production in Gyeonggi Province (up 2.7%) and Seoul (up 1.2%), although Incheon (down 1.6%) experienced a decline. In the Daegyeong region, GRDP increased in North Gyeongsang Province (up 1.9%) but decreased in Daegu (down 3.2%). In the Honam region, GRDP fell in South Jeolla Province (down 3.2%), North Jeolla Province (down 0.9%), and Gwangju (down 0.9%).
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