SEOUL
South Korea’s industrial output grew in September, supported by strong semiconductor production even as retail sales declined for the second consecutive month, according to data released by the Ministry of Data and Statistics on Friday.
Industrial production rose 1 per cent from the previous month, driven largely by a 19.6 per cent surge in semiconductor output — the highest monthly increase since March 2023. The service sector also expanded 1.8 per cent, with gains in wholesale, retail, finance, and insurance helping offset declines in arts, accommodation, and food services.
However, the mining and manufacturing sector overall slipped 1.2 per cent on-month, mainly due to a sharp 18.3 per cent drop in automobile production — the steepest fall since May 2020. Officials attributed this decline to a base effect, noting that both domestic and export demand for vehicles remained stable.
Retail sales, an indicator of consumer spending, edged down 0.1 per cent, following a 2.4 per cent fall in August. The slowdown suggests that consumer activity is easing after earlier gains supported by government stimulus measures. Sales of semidurable goods like clothing dropped 5.7 per cent, while nondurable goods such as cosmetics fell 0.1 per cent. Durable goods, including home appliances, however, rose 3.9 per cent.
Facility investment rebounded strongly, rising 12.7 per cent on robust purchases of machinery for semiconductor production and transportation equipment. The ministry highlighted a notable 28 per cent jump in machinery used for chip manufacturing, underscoring the sector’s growing influence on the country’s economic momentum.
