"Facilities investment grew by 6.1 per cent, led by the growth of investment in machinery and transportation equipment," the BOK said in a statement.
"Exports increased by 2 percent, as exports of goods, such as motor vehicles and mobile phones, expanded," it said.
Last month, the BOK sharply raised its 2021 growth outlook to 4 per cent from 3 per cent, while holding its benchmark policy rate unchanged at a record low of 0.5 per cent, amid a strong rebound in exports.
BOK Gov Lee Ju-yeol has said the pace of the economic recovery was faster than expected but more patience is necessary for the monetary policy.
However, Lee sounded a slightly hawkish tone when asked about the possibility of a rate hike this year, saying that such a hike "depends on the pace of recovery."
Park Yang-su, head of the BOK's economic statistics bureau, told reporters that if the economy grows 0.7 per cent or 0.8 per cent on a quarterly basis by the fourth quarter of this year, the annual GDP would grow 4.1 per cent or 4.2 per cent this year.
In the first quarter, private consumption grew 1.2 per cent on-quarter and construction investment rose 1.3 percent from the previous quarter, the BOK said.
South Korea's economy shrank 0.9 per cent in 2020, 0.1 percentage point higher than earlier estimated.
However, it marked the first annual contraction since 1998, when the economy shrank 5.1 percent due to the Asian financial crisis.
In 2019, the economy expanded 2.2 per cent, accelerating from its earlier estimate of 2 per cent.
Meanwhile, the BOK said the country's gross national income (GNI) increased 2.4 per cent in the first quarter from three months earlier.
"Real GNI grew by 2.4 per cent compared to the previous quarter, increasing more than the real GDP (1.7 per cent), owing to increased net factor income from the rest of the world and improved terms of trade," the BOK said.
In terms of US dollar value, the country's per capita income came to US$31,881 in 2020, down 1 per cent from a year earlier.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.