CHUNGCHEONGBUK-DO < invest Korea

According to Newsis,

(SEJONG = Newsis) Reporter An Ho-gyun — Fueled by a boom in semiconductor exports, North Chungcheong Province continued its growth momentum in industrial and mining production, including manufacturing.

Nationwide industrial output in the second quarter was somewhat sluggish due to the aftermath of the Middle East war, but the service sector expanded in most regions, providing crucial support to the broader economy.

According to the "Q2 Regional Economic Trends" released by Statistics Korea on August 19, nationwide mining and industrial production in the second quarter increased 2.0 percent year-on-year. Despite robust semiconductor exports, overall manufacturing growth slowed compared to the first quarter (2.7 percent) due to the economic impact of the Middle East conflict.

However, North Chungcheong Province—home to a high concentration of memory semiconductor manufacturing facilities—continued its sharp upward trajectory, with second-quarter mining and industrial production surging 27.8 percent year-on-year. The region's industrial production growth rate has posted double-digit gains for five consecutive quarters: 14.1 percent in Q2 last year, 20.2 percent in Q3, 11.7 percent in Q4, 28.4 percent in Q1 this year, and 27.8 percent in Q2.

Mining and industrial output grew in eight regions during the second quarter, led by North Chungcheong, Gwangju (9.1 percent), Daegu (5.7 percent), Busan (4.0 percent), and South Gyeongsang (3.2 percent). Conversely, production declined in nine regions, including South Jeolla (-9.2 percent), Seoul (-5.7 percent), and Daejeon (-5.3 percent).

In North Chungcheong, production expanded significantly in semiconductors and electronic components (70.9 percent), electrical equipment (61.6 percent), and electricity and gas utilities (25.3 percent). Gwangju saw solid gains in automobiles (21.8 percent), rubber and plastics (13.7 percent), and medical, precision, and optical instruments (53.2 percent), while Daegu posted growth in metal fabrication (35.4 percent), semiconductors and electronic components (30.6 percent), and automobiles (6.3 percent).

Although manufacturing was somewhat soft in the second quarter, the service sector supported the economy. Service sector output grew in the 4 percent range for the second straight quarter, following Q1 (4.2 percent) with a 4.5 percent rise in Q2.

Service production increased in 16 regions, with Jeju (-3.0 percent) being the sole exception. Strong growth was recorded in Seoul (7.5 percent), Gyeonggi (4.6 percent), Gangwon (3.8 percent), Daegu (3.8 percent), and Busan (3.6 percent).

In Seoul, growth was driven by financial and insurance activities (21.6 percent), wholesale and retail trade (3.9 percent), and professional, scientific, and technical services (6.4 percent). Gyeonggi Province benefited from strong gains in professional, scientific, and technical services (28.8 percent), wholesale and retail trade (5.0 percent), and information and communications (9.4 percent).

Retail sales in the second quarter increased 2.4 percent year-on-year. Sales grew in nine regions, including Seoul (3.8 percent), Daegu (3.5 percent), and Busan (3.4 percent), while declining in Daejeon (-5.1 percent), South Gyeongsang (-2.7 percent), and North Jeolla (-2.4 percent).

Consumer prices rose 3.0 percent year-on-year, impacted by surging oil prices following the outbreak of the Middle East war. Inflation was relatively high in North Gyeongsang (3.4 percent), South Gyeongsang (3.4 percent), North Jeolla (3.4 percent), North Chungcheong (3.2 percent), Gangwon (3.2 percent), and South Jeolla (3.2 percent). In contrast, urban areas such as Seoul (2.5 percent), Busan (2.7 percent), Daegu (2.6 percent), Incheon (2.8 percent), Gwangju (2.8 percent), and Daejeon (2.8 percent) mostly stayed in the 2 percent range.

The national employment rate in Q2 stood at 63.2 percent, down 0.3 percentage points year-on-year. Employment rates fell in seven regions, including Gyeonggi (-1.1 percentage points), North Gyeongsang (-1.1 percentage points), North Chungcheong (-0.6 percentage points), and Incheon (-0.4 percentage points). Eight regions, including Jeju (1.7 percentage points), Gwangju (0.8 percentage points), and North Jeolla (0.7 percentage points), posted increases, while Seoul and Daegu remained flat compared to the first quarter.

Looking at net population migration in Q2, seven regions experienced net inflows, led by Gyeonggi (11,391 people), Incheon (4,442 people), and North Chungcheong (3,608 people). Ten regions recorded net outflows, led by Seoul (-16,259 people), Busan (-2,596 people), and Gwangju (-1,844 people).

◎ NEWSIS, ahk@newsis.com



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Source Text

Source: Newsis (August 19, 2026)

** This article was translated from Korean.