South Korea's real GDP expanded 0.6 percent in the second quarter of 2026 compared to the previous quarter, well above the Bank of Korea's (BOK) earlier forecast of 0.2 percent growth, driven by a more balanced contribution from both exports and domestic demand. The stronger-than-expected result puts Asia's fourth-largest economy on course for annual growth of 3 percent or more — which would be the first such expansion since 2021 — though the BOK cautioned that renewed Middle East tensions and higher oil prices could weigh on the second half. The solid data have intensified speculation that the BOK could deliver a second consecutive interest rate hike at its next monetary policy meeting on 27 August, following a 25-basis-point increase last week, though some analysts believe the central bank may wait until October and watch incoming inflation figures before acting again.