South Korean GDP contracted more than expected in the first three months of the year. Although the Bank of Korea flagged the possibility last week, the 0.2% quarter-on-quarter drop was a shock to the market in light of the BoK holding its key interest rate unchanged at its April meeting.

Data from the Bank of Korea showed that the drop was mostly due to a fall in construction, with the sector contracting 12.4% year-on-year.

South Korea's economy unexpectedly contracted in the first quarter of the year, the country's central bank said Thursday, amid political turmoil at home and global uncertainty around Trump's tariff scheme.