South Korea's Q2 GDP Rises 0.6% QoQ, 3.7% YoY; USD/KRW Remains Flat on July 24

According to the Bank of Korea, South Korea's Q2 real GDP grew 0.6% quarter-on-quarter and 3.7% year-on-year on July 24, beating market expectations. Q2 real GDI increased 15.6% year-on-year, marking the highest growth rate since Q1 1988. The strong results came as Seoul's foreign exchange market transitioned to 24-hour continuous trading, allowing economic data releases during market hours.

Despite the GDP surprise, USD/KRW failed to react sharply. The rate traded at 1,479.00 won just before the 8:00 a.m. announcement and 1,477.50 won after, showing minimal movement. Market participants attributed the muted response to thin liquidity during early morning hours and the likelihood that positive growth expectations had already been priced in.