South Korea's Ministry of Economy and Finance reported that overall industrial output rose 3.0% in September 2026 from August, its largest monthly increase in 15 years and six months. The rebound followed August's 1.2% decline, which reflected automobile strikes and concentrated summer holidays. Retail sales and equipment investment also returned to growth, while construction output increased for a second consecutive month. Mining and manufacturing output jumped 9.0%, the largest monthly increase in 17 years and seven months. Semiconductor production rose 19.2% to a record level, while automobile output increased 39.9% as strikes ended and manufacturers expanded overtime to recover lost production. Retail sales grew 3.6%, equipment investment increased 5.3% and construction output rose 5.8%. Across the third quarter, overall industrial output expanded 1.9% from the preceding quarter, compared with 1.0% growth in the second quarter. However, retail sales fell 1.0% over the quarter despite September's recovery. The ministry expects the underlying growth trend to continue in October, although some monthly indicators may retreat after September's gains. Exports, business sentiment and machinery and construction orders support that assessment. Prolonged high oil prices, global interest rate increases and uncertainty surrounding U.S. midterm elections remain risks amid increased financial market volatility. The government's stated priorities include household price stability and support for housing, employment and access to finance for lower-income households.

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