In January 2025, Korea’s industrial activities declined due to adjustments in total industrial production (△2.7 percent month-on-month/△3.5 percent year-on-year) caused by the base effect from the previous month's increase in the mining and manufacturing industries (2.3 percent/4.1 percent) and the service industry (0.8 percent/0.9 percent) and fewer working days.

In January, the mining and manufacturing industries decreased amidst falling exports: even as the semiconductors industry increased slightly by adding inventories, automotive, electronic parts and machinery saw a decline. In the service industry, face-to-face services including accommodation and food, and arts, sports, and leisure improved, but the retail and wholesale and transportation and warehousing sectors declined alongside falling exports and imports. Retail sales declined even as durable goods grew (1.1 percent), affected by falling sales of semi-durable goods (△2.6 percent) and non-durable goods (△0.5 percent). Capital investment shrank as machinery decreased, and transportation equipment such as aircraft and ships also declined after the previous month’s big jump. Construction completed decreased in both civil engineering and construction. The cyclical change in the coincident index decreased due to a fall in construction completed. The cyclical change in the leading index declined alongside falling domestic shipments of machinery and construction orders.

The main indicators declined due to the base effect from the large increase in the previous month caused by manufacturers increasing exports at year-end and the Lunar New Year holiday leading to fewer working days. With downward pressure on the economy increasing due to the expansion of internal and external uncertainties such as US tariffs, it is necessary to make every effort to improve people’s livelihoods and support exports.

‘Both Domestic Consumption and Exports Declined as Bad Weather Affected Supply’
→ Exports in December decreased by 2.8 percent year-on-year to fall for the second month due to a decrease in the supply of finished vehicles and the base effect. Domestic sales in November decreased by 8.4 percent year-on-year alongside falling supply of domestic vehicles and weakened consumer sentiment. Production in November turned negative year-on-year following the previous month’s growth as heavy snowfall disrupted production.

‘Production, Shipments, and Capacity Utilization Rate All Increased by Double Digits for Five Consecutive Months’
→ In November, all major production indicators increased by double digits to grow for five consecutive months, and the industry continued to expand. Even as a high number of high-value ships were delivered, December exports fell by 15.8 percent due to the base effect. In November, imports grew by 29.9 percent driven by the influx of cargo and tanker ships. Cumulative global ship orders (based on Clarksons report) from January to November 2024 reached 60.33 million CGT and grew by 35.5 percent year-on-year, but South Korea's orders only accounted for 10.8 percent, showing a significant gap with China (61.8 percent).

‘General Machinery Production Continued Growing Despite Sluggish Exports’
→ In November, production increased by 0.9 percent year-on-year, driven by strong facility investment. In December, exports fell by 7.0 percent year-on-year due to a decline in exports to the US and the base effect. In November, imports fell by 3.0 percent year-on-year as the construction industry remained sluggish.

‘Exports Increased Further, but Production Continued to Fall due to Slow Sales’
→ In November, despite brisk exports to ASEAN and other regions, production shrunk by 1.5 percent year-on-year affected by sluggish domestic demand from major steel-consuming industries. In December, exports increased by 2.9 percent year-on-year as demand for steel grew in major regions such as ASEAN and domestic manufacturers increased exports to deplete inventory at the end of the year. November imports increased by 5.2 percent year-on-year as the country imported more from India and Southeast Asia and unit import prices increased.

‘ Exports Fell by 12.2 percent Year-on-Year due to Weak Exports, Falling International Oil Prices and Reduced Volume ’
→ Production in November fell by 3.6 percent year-on-year as domestic refineries cut capacity utilization rates to cope with weak refining margins in Q2 and Q3. December exports decreased by USD 540 million year-on-year due to lower unit prices and reduced volume.

‘December Exports Grew by 11.2 percent with the Smartphone Market Expected to Continue Growing in 2025’
→ The global smartphone market is expected to continue growing in 2025 following the previous year’s rebound in semiconductors and IT product sectors, but the growth rate is expected to decrease somewhat. November production declined by 10.9 percent year-on-year, while shipments grew by 12.6 percent and inventories fell by 19.9 percent. November imports plunged by 26.7 percent, with smartphone imports declining by 51.9 percent year-on-year.

‘Exports Grew for 14 Straight Months’
→ In December, exports amounted to USD 14.55 billion, up 31.5 percent year-on-year, with monthly exports surpassing USD 14 billion for the first time. The semiconductor production index for November stood at 174.7, up 11.1 percent year-on-year and 3.9 percent month-on-month, marking the second consecutive month of growth.

‘ Slow Exports and Production Continued Due to Last Year’s Strong Performance and Expansion of Overseas Production ’
→ December exports fell by 3.3 percent year-on-year as sales of new products remained weak and competition with China intensified. The production index for November was 67.2, down 10.2 percent year-on-year and 4.7 percent month-on-month.