The South Korean economy grew 1.5 per cent in the second quarter from three months earlier on robust exports and improved consumer spending, the central bank said today, pointing to its solid recovery.

Asia's fourth-largest economy expanded 7.2 per cent in the April-June period from a year earlier and gained 7.6 per cent on-year in the first half, according to data by the Bank of Korea (BOK).

But the quarterly growth slowed from a 2.1 per cent on-quarter expansion in the January-March period, though it beat an earlier BOK estimate of 1.2 per cent and a consensus forecast of 1.1 per cent in a survey by Yonhap News Agency.

"The Korean economy is continuing stronger-than-expected growth, indicating that the growth recovers to the pre-crisis level and the local economy may have entered an expansionary phase," Kim Myung-kee, director general of the BOK's economic statistics division, told a press conference.

Kim said the second-quarter growth came as overseas shipments remained brisk, making related manufacturers grow quickly, and the contribution by domestic demand to the economy has increased since the fourth quarter of last year.

The data underpins forecasts that the central bank may conduct an additional rate hike this year to rein in growing inflationary pressure.

The BOK unexpectedly raised the key interest rate for July to 2.25 per cent from a record low of 2 per cent to curb inflationary pressure, heralding the start of South Korea's stimulus exit.

Reflecting optimism about the economic recovery, the BOK upgraded its 2010 growth forecast to 5.9 per cent from an earlier projection of 5.2 per cent. The government put its economic growth estimate at 5.8 per cent for this year.