Illustration of declining South Korean industrial output with factory scene and graphs, related to Middle East tensions.
Illustration of declining South Korean industrial output with factory scene and graphs, related to Middle East tensions.
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South korea's industrial output falls in april amid middle east tensions

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Statistics Korea reported on May 29 that industrial output fell 0.6 percent in April from March, with retail sales and facility investment also dropping 3.6 percent each.

Mining and manufacturing output dropped 0.7 percent, hit by a 10 percent decline in automobiles, while chip production rose 3.1 percent. Oil refining plunged 19.4 percent.

Finance Minister Koo Yun-cheol said industrial output is expected to return to an upward trend in May as consumer and business sentiment recover and exports remain strong.

The government pledged to ease energy cost burdens and support domestic consumption amid ongoing Middle East uncertainties.

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Illustration depicting South Korea's rising industrial output, retail sales, and facility investment in March, with factories, shoppers, construction, and upward charts.
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South Korea's industrial output, retail sales and facility investment rise in March

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South Korea's industrial output, retail sales and facility investment all rose from a month earlier in March, official data showed on April 30. It marked the first time since September that all three indicators posted on-month growth. A ministry official said the Middle East crisis has not yet impacted the economy.

South Korea's industrial output rose 2.5% in February from the previous month, the fastest growth in five years and eight months. Government data showed retail sales unchanged while facility investment jumped 13.5%. The Middle East crisis has had minimal impact so far.

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South Korea's business sentiment for May remains pessimistic due to the prolonged Middle East crisis, a Federation of Korean Industries survey showed Thursday. The business survey index for the top 600 companies by sales stood at 87.5, below the 100 benchmark where pessimists outnumber optimists. This marks two consecutive months below the line.

South Korea's exports surged 49.4 percent year-on-year to $50.4 billion in the first 20 days of April, driven by robust semiconductor demand, Korea Customs Service data showed Tuesday. Imports rose 17.7 percent to $39.9 billion, yielding a $10.4 billion trade surplus.

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South Korea's real GDP jumped 1.7 percent in Q1 2026 from the prior quarter—the strongest growth in 5½ years—despite Middle East tensions, easily topping the Bank of Korea's 0.9 percent forecast on robust exports and steady domestic demand. Part of the rebound following 2025's modest 1% annual expansion (see prior article in series).

South Korean shares opened sharply lower on March 19 amid attacks on Middle East energy facilities during the US- and Israel-led war against Iran. The US Federal Reserve's decision to keep rates unchanged further dampened sentiment. The KOSPI fell 2.16% in the first 15 minutes.

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Official data showed China's value-added industrial output rose 5.6 percent year on year in the first four months of 2026. Growth in April reached 4.1 percent from a year earlier.

 

 

 

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