South Korea Industrial Output Falls the Most in 7 Months

South Korea’s industrial production dropped by 3.0% month-on-month in May 2026, following a 0.7% decline in the previous month. It was the steepest decline since last October, due to a faster fall in manufacturing (-3.0% vs -0.8% in April). Chips and pharmaceutical products mainly weighed down the decline in manufacturing activity, while the automobile sector increased. Manufacturing production declined for both domestic (-5.0% vs -4.2%) and overseas (-2.6% vs 2.4%) demand. In contrast, services activity rose 1.3%, rebounding from a 0.9% drop in the previous month. On a yearly basis, industrial production fell 0.9% in May, reversing a 1.5% rise in April and marking the first decline in three months.

South Korea’s industrial production fell by 0.7% month-on-month in April 2026, surprising markets that had expected a 0.3% gain and slipping from an upwardly revised 0.6% increase in the previous month. The decline was driven by weaker manufacturing activity, which dropped 0.8%, as output of automobiles and petroleum refining fell sharply. Auto production tumbled 10.0% amid lower output of large and hybrid passenger vehicles, while petroleum refining sank 19.4% due to weaker diesel and gasoline production. In contrast, semiconductor output rose 3.1%, while pharmaceutical production jumped 13.3%. Services activity also contracted 1.0%, weighed down by declines in finance and insurance as well as wholesale and retail trade, though information and communication output rose 4.3%. On a yearly basis, industrial production increased 1.5% in April, falling short of market forecasts for a 2.2% rise and slowing from a revised 3.9% gain in March.

South Korea’s industrial production grew 0.3% month-on-month in March 2026, easing sharply from a downwardly revised 5.3% increase in February but slightly exceeding market expectations for a 0.2% rise. The growth in output was supported by a 0.3% expansion in manufacturing. Services activity also rose 1.4%, while the construction sector and public administration contracted by 7.3% and 3.3%, respectively. In the first quarter of the year, industrial output expanded 2.7% compared to the previous quarter. On a year-on-year basis, industrial output rose 3.6% in March, rebounding from an upwardly revised 2.3% decline in February but falling short of forecasts for a 3.8% increase.