South Korea’s Ministry of Economy and Finance reported that all-industry production was unchanged in July 2026 from the previous month and increased 3.1% from a year earlier. A 0.2% rise in mining and manufacturing production and a 10.4% increase in public administration offset a 1.3% decline in services. Semiconductor and electronic component output supported manufacturing growth despite lower automobile production. Equipment investment rose 7.5% month on month and 24.9% year on year, driven by machinery and transport equipment. Retail sales fell 2.4% from June, largely reflecting a reversal in durable goods sales after the expiry of an automobile tax reduction and major appliance discounts. Construction output declined 1.1%. The ministry assessed that consumption recovery momentum continued, citing a 1.5% increase in combined June-July retail sales over April-May and faster card sales growth in August. The government plans to strengthen energy and supply chain risk management, accelerate three major projects intended to support potential growth, and implement measures for youth employment, vulnerable borrowers and cost-of-living pressures.
2026-08-31Ministry of Economy & Finance (South Korea)
South Korea's Ministry of Economy and Finance reports flat July production and 7.5% rise in equipment investment
South Korea’s Ministry of Economy and Finance reported that July all-industry production was flat month on month and 3.1% higher than a year earlier. Equipment investment rose 7.5%, while retail sales and construction output fell 2.4% and 1.1%, respectively. The ministry assessed that the recovery continued despite external uncertainty and cost-of-living pressures.