What's Happening?
South Korea's gross regional domestic product (GRDP) increased by 6.2% in 2024, reaching 2,561 trillion won, according to data from the Ministry of Data and Statistics. This growth was primarily driven by the manufacturing sector and the greater capital
area. Gyeonggi Province, surrounding Seoul, recorded the highest GRDP at 651 trillion won, accounting for 25.4% of the national total. Seoul followed with a GRDP of 575 trillion won. The mining and manufacturing sectors saw a 4.2% increase, with significant growth in Gyeonggi Province. The service and utilities sectors also expanded by 1.5% and 5.1%, respectively. Gross regional income rose by 6.2% to 2,598 trillion won. While Seoul and Gyeonggi Province experienced net income inflows, South Chungcheong Province and Ulsan saw net outflows.
Why It's Important?
The growth in South Korea's GRDP highlights the country's economic resilience and the pivotal role of the manufacturing sector in driving economic expansion. This increase in economic output can lead to improved living standards and increased investment in infrastructure and public services. The concentration of economic activity in regions like Gyeonggi Province and Seoul underscores the importance of these areas as economic hubs. However, the net outflows in regions like South Chungcheong Province and Ulsan suggest regional disparities that may need addressing to ensure balanced economic development. The data also reflects the broader global economic trends where manufacturing continues to be a key driver of growth.
