South Korea's industrial output grew 0.9 percent in November, driven by strong semiconductor production, while retail sales fell 3.3 percent, the sharpest drop in 21 months. Data from the Ministry of Data and Statistics attributes the retail decline to the fading effects of the Chuseok holiday and base effects. Cumulative retail sales for January to November rose 0.4 percent, suggesting a possible positive annual figure.
South Korea's industrial production rose 0.9 percent on-month in November, according to data released Tuesday by the Ministry of Data and Statistics. The growth was propelled by a 7.5 percent surge in semiconductor output, fueled by rising global demand amid the artificial intelligence boom. The mining and manufacturing sector, a cornerstone of the economy, increased 0.6 percent.
In contrast, retail sales—a key indicator of private consumption—plummeted 3.3 percent, marking the steepest decline since February 2024, when it fell 3.1 percent. The drop was driven by weaker sales in food and apparel, as the effects of the extended Chuseok holiday in early October faded. Semidurable goods like clothing declined 3.6 percent, non-durable goods including food fell 4.3 percent—the sharpest since February 2024—and durable goods such as home appliances slipped 0.6 percent.
"There is also a base effect following the increase in October due to the Chuseok holiday, a brief cold spell and various discount campaigns," said Lee Doo-won from the ministry.
Facility investment grew 1.5 percent, led by higher spending on machinery, though investment in transportation equipment including automobiles decreased. Industrial output has been volatile recently: it fell 0.3 percent in August, rose 1.3 percent in September, and dropped 2.7 percent in October.
Despite the monthly dip, cumulative retail sales from January to November rose 0.4 percent, raising hopes for a positive annual figure in 2025 and ending three years of declines. The ministry anticipates continued support from robust semiconductor exports and solid consumer sentiment.
