It's the first technical recession since 2003,… South Korea's gross domestic product dropped by 3.3 percent in the second quarter posting negative growth for two quarters in a row, as exports plunge amid COVID-19 pandemic.
It's also the biggest setback since the Asian financial crisis.
For more, we connect to our economic correspondent Yoon Jung-min, who has the details.
That's right, Se-min. The Bank of Korea said this morning that the country's second quarter GDP fell by 3.3 percent on-quarter.
This is the biggest decline since the first quarter of 1998, when South Korea's economy contracted by over 6 percent amid the Asian financial crisis.
On-year, the economy contracted by 2.9 percent, which is also the lowest in over two decades.
Real gross domestic income also fell 2 percent on-quarter.
South Korea's exports tumbled over 16 percent the biggest decline in over five decades.
Exports of automobile and petroleum products continued to fall as COVID-19 hammered global trade.
Imports also fell more than 7 percent.
And investment in construction and facilities was down.
The manufacturing sector dropped 9 percent, while the agriculture sector plunged 9.7 percent.
Private consumption, however, was up 1.4 percent.
This was thanks to the COVID-19 relief funds and lower consumption tax rate on cars.
And the nation's finance minister gave out his response, moments after the BOK's growth release, tell us more.
Right. Finance minister Hong Nam-ki said this morning that the performance during the second quarter was worse than expected.
He said it was mainly due to external shocks, despite a pick up in the private consumption.
Hong added that if South Korea continues to keep the COVID-19 situation in check, it will see a rebound in the third quarter.
The finance minister said the recovery in the third quarter would largely depend on the effects of the supplementary budget, its ambitious Korean New Deal project, and the reopening of social, economic activities.
That's all I have for now. Back to you, Se-min.