The South Korean economy's economic growth in the second quarter reached a five-year high on the back of large scale stimulus packages and export rises, the central bank said on Friday.

According to the Bank of Korea (BOK), the country's gross domestic product (GDP) saw a 2.3 percent on-quarter expansion during the April-June period, sharply up from a 0.1 percent on-quarter advance in the first quarter.

The second-quarter figure stood at the highest since the fourth quarter of 2003 when the country marked a 2.7 percent growth rate.

The BOK attributed the economic recovery to a rebound in exports and consumer spending, triggered by the government's massive fiscal spending and successive interest rate cuts.

Exports jumped 14.7 percent on-quarter in the April-June period, marking the steepest growth since a 14.9 percent expansion in the fourth quarter of 2003.

Private spending also increased 3.3 percent, together with facility and construction investment, which rose 8.4 percent and 0.4 percent, respectively.

The South Korean government has been pushing for boosting up the economy by deciding on a massive fiscal spending worth 28.4 trillion won (US$22.7 billion) and freezing the key rate at a record low of 2 percent.

The recent figure came amid budding optimism that the economy is walking out of the recession.

The government and the central bank, however, showed caution on the recent views, saying it would continue with its expansionary macroeconomic policy and the rate freeze as downside risks still remain.

(Xinhua News Agency July 24, 2009)