Roundup: S.Korea's Q2 GDP growth stays low, boosts concern over low growth trend

South Korea's economic growth stayed below 1 percent for three straight quarters, boosting concern about the prolonged low-growth trend, central bank data showed on Tuesday.

Real gross domestic product (GDP), seasonally adjusted for inflation, reached 375.04 trillion won (328.7 billion U.S. dollars) in the second quarter, up 0.7 percent from the previous quarter, according to the Bank of Korea (BOK).

It was up from a 0.5 percent quarterly expansion tallied in the first quarter, but the second-quarter figure marked the zero-percent growth for the third consecutive quarter.

From a year earlier, the real GDP increased 3.2 percent during the April-June period.

The central bank said the first-half growth met the BOK's expectations of 3.0 percent, but it indicated an economic slump in the second half as it forecast the economy's 2016 growth at 2.7 percent.

The ongoing restructuring, led by the government, in troubled shipbuilders and shipping lines are widely expected to pull down the economy's recovery.

The country's three major shipbuilders, including Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering, had submitted a plan to cut workforce by 30 percent and reduce overcapacity by 20 percent by the end of 2018.

The southeastern region, where major shipyards and ports are sited, is forecast to be hit hardest by the ongoing restructuring process, with the region's unemployment rate beginning to go higher from the first quarter of this year.

Exports, which account for about half of the economy, gained 0.9 percent in the second quarter from the prior quarter due to demand for semiconductors as well as oil and chemical products. Imports rose at a faster pace at 1.9 percent.

Despite the growth, concerns lingered about the exports due to uncertainties such as the falling global trade, the prolonged trend of low oil prices and China's shift into a consumption-centered economy from an exports-focused.

Private consumption, another engine for economic expansion, increased 0.9 percent in the second quarter, turning around from a 0.2 percent reduction in the first quarter. But, it stemmed mainly from a one-off factor such as the government's cut in consumption tax for cars and the launch of new auto models.

The country's five automakers reportedly sold 812,265 cars in the first half of this year, up 10.9 percent from a year earlier thanks to the temporary consumption tax cut.

Massive household debts and high jobless rate among youths are expected to continue to weigh down on private consumption.

Facility investment rebounded from a 7.4 percent decline in the first quarter to a 2.9 percent expansion in the second quarter, but there remained uncertainties over whether local companies would increase capital spending in the second half due to the restructuring process and the still weak global trade.

Investment in the construction sector rose 2.9 percent during the April-June period, less than halving a 6.8 percent growth in the previous three-month period.

To bolster the lackluster economy, South Korea's government unveiled an extra budget plan, worth 11 trillion won, for the second quarter, and the BOK lowered its benchmark interest rate to an all-time low of 1.25 percent in June.

Despite the fiscal and monetary stimulus measures, economic outlook among economic think tanks are still bleak due to the still weak global trade and the U.S. Federal Reserve's anticipated interest rate hike as early as September as well as potentially negative impacts from the Brexit, or British referendum to leave the European Union (EU). Enditem