South Korea's Ministry of Economy and Finance published its March and first-quarter industrial activity update, showing all-industry production rose 0.3% month on month and 3.5% year on year in March, marking a second consecutive monthly increase. The ministry also reported a broad-based first-quarter recovery, with all-industry production up 1.7% quarter on quarter and 2.8% year on year, which it said was consistent with the 1.7% first-quarter GDP growth announced earlier. In March, industrial production increased 0.3% and services output rose 1.4%, while public administration fell 3.3%. On the expenditure side, retail sales rose 1.8% and facility investment rose 1.5%, while construction output fell 7.3% after a sharp increase in February. Industrial gains were driven by automobiles and other transport equipment despite declines in semiconductors and petroleum refining, while services were supported by finance and insurance and transport and warehousing. The coincident index cyclical component rose 0.5 point and the leading index cyclical component rose 0.7 point. For the first quarter, retail sales increased 2.4%, facility investment 12.6%, and construction output 1.2%. The ministry assessed that the March figures showed recovery continuing despite the Middle East war, citing domestic demand support, capital market activation measures, and rapid government responses including price caps. It said it would seek to sustain the recovery by quickly executing supplementary budget items such as high oil price damage support payments that began on April 27, implementing previously announced green consumption and tourism and youth New Deal measures, and preparing additional actions including a second-half economic growth strategy.

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