South Korea Manufacturing Growth Strongest in 4 Years

The S&P Global South Korea Manufacturing PMI rose to 53.6 in April 2026 from 52.6 in March, marking the strongest expansion since February 2022. Output and new orders accelerated, driven by new product launches and client stockpiling. Export demand also edged higher, supported in part by easing US tariff-related disruptions. Production grew at the fastest pace in 20 months, while firms continued to increase purchasing activity to secure inputs. Employment also continued to rise, while backlogs increased further. However, material shortages led to further declines in input inventories. On prices, input costs and output charges surged at record rates since April 2004, driven by higher raw material, oil, and fuel prices and supply disruptions linked to the Middle East conflict. Supplier delivery times worsened to the greatest extent since June 2022, while finished goods inventories fell sharply. Looking ahead, business confidence dropped to a five-month low.

The S&P Global South Korea Manufacturing PMI increased to 52.6 in March 2026 from 51.1 in February. It marked the strongest growth in factory activity since February 2022, as both output and new orders rose, with the former increasing at the steepest rate since August 2024 amid improved domestic demand. Meanwhile, employment rose for the first time in three months, with the rate of job creation hitting a six-month high amid reports that companies looked to take on full-time staff. Consequently, firms recorded a third consecutive monthly accumulation in backlogs of work, though the latest increase was only fractional overall. On prices, input cost inflation accelerated to its fastest pace since June 2022. As a result, output cost inflation also accelerated to the greatest degree since July 2022. Looking ahead, business sentiment deteriorated to a four-month low amid rising geopolitical tensions.

The S&P Global South Korea Manufacturing PMI came in at 51.1 in February 2026, easing marginally from 51.2 in January but signaling a third straight month of expansion in factory activity. Firms reported firmer output growth alongside a solid increase in new orders. Manufacturers frequently cited a strengthening semiconductor industry, which lifted sales to both domestic and overseas clients and shaped purchasing activity during the month. However, corporate restructuring efforts and the non-replacement of departing staff led to the sharpest contraction in employment since September 2020. At the same time, companies indicated a continued and pronounced rise in operating costs, largely attributed to elevated raw material prices and exchange rate volatility. Looking ahead, sentiment toward the year-ahead outlook remained positive midway through the first quarter, supported by the ramp-up in mass production of newly launched products and further gains in both domestic and external demand.