South Korea Industrial Output Rises Most in 6 Years

South Korea’s industrial production grew 6.4% month-on-month in June 2026, rebounding from a downwardly revised 2.9% decline in May, which was the steepest drop in seven months, and exceeding forecasts of a 3% rise. It was also the first increase in industrial production in three months and the strongest growth since June 2020, boosted by a sharp rebound in manufacturing (6.8% vs -3.2% in May), led by the automobile industry. Meanwhile, services activity rose at a slower pace of 0.7%, following a 1.0% increase in the previous month. On an annual basis, industrial production jumped 6.1% in June, rebounding from an upwardly revised 1.1% decline in May, which was the first decline in three 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.