South Korea Industrial Production Hits 15-Year Growth Peak
South Korea reported its fastest monthly industrial production growth in over 15 years for September, driven by surges in semiconductor and automobile output.
Industrial production in South Korea rose by a seasonally adjusted 9.0 percent month-on-month in September, reversing a 4.6 percent decline in August. This expansion represents the fastest monthly growth in over 15 years, with the mining and manufacturing sector growing by 9 percent. The surge was primarily driven by a 19.2 percent increase in semiconductor production, specifically memory chips, and a 39.9 percent jump in automobile output following the conclusion of summer vacations and local labor strikes.
For the first time since June, industrial output, retail sales, and facility investment all increased simultaneously. Retail sales grew 3.6 percent, while facility investment rose 5.3 percent. On a yearly basis, production increased by 1.2 percent, and third-quarter production grew by 3.0 percent compared to the previous quarter.
While the Ministry of Finance and Economy expects the upward trend to continue, officials warned that high oil prices, global interest rate hikes, and U.S. midterm election uncertainties pose risks to financial stability. The ministry stated it intends to prioritize stabilizing living costs, specifically focusing on housing, jobs, and financial services for vulnerable groups.
