South Korea’s economy outperformed even the central bank’s estimates in the first quarter of this year, boosting consumer sentiment in Asia’s fourth-largest economy.
According to Bank of Korea data released on Tuesday, real gross domestic product (GDP) increased by 1.8% in 1Q26, compared to the 1.7% rise estimated by the bank in April. This represented a 3.8% yearly increase, driven by strong growth across all major areas of economic activity, with the bank highlighting a 3.9% GDP increase in manufacturing “mainly due to an increase in computer, electronic and optical products” as well as a construction sector GDP rise of 2.2% due to increases in building construction and civil engineering.
The services sector saw a more modest 0.6% increase in GDP during the first quarter of the year, the same as the previous quarter but rising from a negative 0.1% figure in 1Q25. This was centered on “increases in wholesale and retail trade, accommodation and food services, and finance and insurance,” noted the bank.
The rising GDP led to a rise in real personal gross disposable income (PGDI), which was up by 0.3% compared to 4Q25 but increased by 4.5% compared to 1Q25.
The rise in South Korea’s economy bodes well for Korean-facing gaming operators, such as those in the Philippines, who could potentially see a much-needed boost in tourism from Seoul.
According to Philippines Department of Tourism (DOT) data, arrivals from South Korea during the first five months of this year were down 9.58% year-on-year, totaling just 499,944, as visitor numbers dwindled significantly amongst geopolitical unrest and rising fuel prices.
South Korea continued to be the Philippines’ largest tourism source market, contributing 18.24% of total visitor arrivals during the five month-period, just ahead of the United States – which contributed 17.54% of international arrivals.
The focus remains on stimulating more Korean visitation, with President Ferdinand Marcos Jr in March praising the “growing appreciation of Koreans for the Philippines” and the Tourism Secretary calling South Korea “one of the Philippines’ most vital and valued tourism markets.”
Aside from encouraging more outward spend, the GDP increase could trigger more spending at home, however for those wishing to visit the casino, locals are limited to the 200 tables and 1,360 slot machines at Kangwon Land.
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