The South Korea Ministry of Economy and Finance published its assessment of April industrial activity, stating that overall industrial production fell 0.6 percent month on month after two months of strong gains. It attributed the pullback to base effects, raw material supply disruptions and weaker sentiment linked to the Middle East war. Mining and manufacturing output fell 0.7 percent and services output fell 1.0 percent, although total industrial production was still up 2.4 percent year on year and services output recorded a fifteenth consecutive annual increase. On the spending side, retail sales fell 3.6 percent from March, equipment investment fell 3.6 percent, and construction completed fell 1.4 percent. The ministry linked the decline in retail sales to lower vehicle fuel demand amid high oil prices, base effects from the previous month’s mobile device launch, and temporary auto production disruption after a fire at an auto parts supplier. Manufacturing weakness was driven in part by lower petroleum refining and chemical output, while semiconductors and pharmaceuticals increased. At the same time, the coincident cyclical indicator rose 0.2 point and the leading indicator rose 0.6 point. The ministry said it expects improvement to resume in May, citing a rebound in consumer sentiment to 106.1, a rise in the business sentiment index to 98.9, gradual recovery in crude oil and naphtha supplies to about 90 percent of normal levels, and strong high-frequency indicators including customs exports up 64.8 percent year on year in the first 20 days of May and capital goods imports up 30.0 percent.
Ministry of Economy & Finance (South Korea)2026-05-29
South Korea Ministry of Economy and Finance reports April industrial output fell 0.6 percent amid base effects and Middle East war disruptions
The South Korea Ministry of Economy and Finance reported that industrial production fell 0.6 percent month on month in April, with mining and manufacturing down 0.7 percent and services down 1.0 percent, though output remained 2.4 percent higher year on year. The ministry cited base effects, raw material supply disruptions and weaker sentiment, noting declines in retail sales, equipment investment and construction, and weakness in petroleum refining and chemicals. It expects conditions to improve in May, citing stronger sentiment, recovering crude oil and naphtha supplies, and sharp gains in early May exports and capital goods imports.