South Korea Industrial Output Growth Eases to 0.2%

South Korea’s industrial production increased 0.2% month-on-month in July 2026, easing sharply from an upwardly revised 6.7% rise in June. It was the second consecutive month of growth in industrial production, though the pace slowed sharply from the strongest growth since February 2009, recorded in June, with manufacturing growth slowing sharply (0.2% vs 7.0% in June), supported by the electronic component segment. Manufacturing production eased for both domestic (1.1% vs 3.9%) and overseas (3.1% vs 5.1%) demand. Meanwhile, services activity fell 1.3%, reversing a 0.9% increase in the previous month. On an annual basis, industrial production rose 3.6% in July, after an upwardly revised 6.0% surge in June, marking the second consecutive month of increase.

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. Manufacturing production recovered for both domestic (3.7% vs -5.1%) and overseas (5.0% vs -3.2%) demand. 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 5.8% in June, above expectations of 2.5%, marking the strongest growth since February and rebounding from an upwardly revised 1.1% decline in May, which was the first decline in three months. For the second quarter of the year, industrial output grew 2.9% yoy, unchanged from the first quarter.

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.