South Korea's industrial output fell 0.3 percent in May from April, mainly due to adjustments in chip production and supply disruptions, data released Tuesday showed.
Output in the mining and manufacturing sector dropped 3 percent, with semiconductor production falling 10 percent due to a base effect and volume adjustments in memory chips including DRAM.
Retail sales edged up 0.1 percent, while service sector output rose 1.3 percent. Facility investment declined 0.1 percent.
Lee Doo-won, a senior official at the data ministry, told reporters that chip sector fundamentals remain strong and that the decline reflected temporary adjustments as production capacity reached limits.
A finance ministry official noted chip exports surged 188.4 percent in the first 20 days of June and said output could rebound in the June report. The ministry added that major indicators are expected to improve following peace talks between the United States and Iran that lowered global crude prices.
