South Korea Retail Sales Grow 0.5% in 2025

South Korea’s retail sales rose 0.5% year-on-year in 2025, rebounding from a contraction in the previous year, supported mainly by stronger demand for durable goods such as vehicles. In December, retail sales increased 0.9% month-on-month, reversing a sharp 3.3% decline in November. Retail sales are a key indicator of private consumption, and the late-year rebound points to some stabilization in household spending momentum.

South Korea’s retail sales fell 3.3% month-over-month in November 2025, reversing from a marginally revised 3.6% increase in the previous month. It marked the sixth monthly decline this year, as high borrowing costs and elevated living expenses continued to weigh on household spending. Meanwhile, the fading impact of earlier promotional campaigns further constrained sales heading into year-end.

South Korea’s industrial production fell 4% month-on-month in October 2025, widening from a 1.1% decline in September and missing market expectations for a 0.2% drop. It was the sharpest contraction since July last year. The downturn reflected pressure from shifting global trade policies that weighed on major export sectors, including semiconductors, automobiles, and electronic components. On an annual basis, industrial output sank 8.1% in October, a sharp reversal from the 11.9% gain in September and the steepest fall since April 2023.