In June 2025, South Korea’s industrial activities increased for the first time in three months, with growth in mining and manufacturing (1.6 percent month-on-month and 1.6 percent year-on-year), services (0.5 percent month-on-month and 1.8 percent year-on-year), and public administration (1.4 percent month-on-month and 1.5 percent year-on-year) leading to an overall increase in total industrial production (1.2 percent month-on-month and 0.8 percent year-on-year).

In June, despite a sharp decline in electronic parts production, the mining and manufacturing industry returned to growth after three months, supported by favorable conditions in the semiconductor industry and improved performance in the automotive industry. The service industry also grew, driven by increases in wholesale and retail trade, finance and insurance, and professional, scientific, and technical services. However, sectors such as health and welfare, and accommodation and food services saw declines. Capital investment fell, as increases in machinery, including semiconductor manufacturing machinery, were offset by declines in transportation equipment such as aircraft and ships. Despite a decline in civil engineering, construction completed turned upward, driven by a sharp increase in building construction. Despite the growth in construction output, the cyclical change in the coincident index fell due to declines in domestic shipments and manufacturing output. Even as machinery shipments fell, the cyclical change in the leading index rose, supported by increases in KOSPI and economic sentiment indices.

Key indicators of the nation’s industrial activities in June rebounded from the sluggish trend seen in April and May. The effects of the government’s second supplementary budget, including consumer coupons for livelihood recovery, stock market revitalization, and the recovery of consumer sentiment (consumer sentiment in July saw the biggest jump in four years and one month) are expected to have a positive impact on consumption and the economy going forward. The government will make every effort to boost consumption and the economy.

‘May Exports Continued to Decline as Drop in Exports to the US Widened’
→ In May, exports fell by 5.5 percent year-on-year, as fewer finished cars and parts were exported to the US. Domestic demand in April increased by 7.0 percent year-on-year, driven by strong sales of hybrid vehicles and supportive policy measures. Despite the increase in domestic demand, production in April turned to a year-on-year decline, affected by sluggish exports.

‘Both Production and Shipments Maintained Sharp Increases’
→ Production in April increased significantly by as much as 47.3 percent year-on-year, maintaining its high growth trend. Exports in May increased by 4.3 percent year-on-year, marking the third consecutive month of growth. Imports in April jumped by as much as 24.6 percent year-on-year, led by strong imports of ships. South Korea has fared relatively well even as global policy uncertainties, such as the introduction of SHIPS for America Act in the US and the imposition of port fees on Chinese vessels, dampened overall new ship orders.

‘Despite Sluggish Production and Exports in April, Production Turned to Growth Thanks to a Recovery in Domestic Demand’
→ Production in April increased by 2.4 percent year-on-year as domestic demand recovered. Exports in May fell by 5.3 percent year-on-year due to the impact of weakening global investor sentiment. Imports in April grew by 6.6 percent year-on-year, led by the recovery in domestic demand and an increase in capital investment.

‘April Production Continued to Decline, and May Exports Turned Downward’
→ Despite an increase in exports to emerging countries, April production fell by 2.6 percent year-on-year due to the impact of equipment maintenance and sluggish demand, which led to a suspension of operations. May exports decreased by 12.4 percent year-on-year as weak export prices and US tariff policies dampened the global steel industry. April imports contracted by 15.4 percent year-on-year due to weak domestic demand and a reduction in imports from China and Japan following the launch of anti-dumping investigations.

‘May Exports Fell by More Than 20 percent due to Falling International Oil Prices’
→ April production decreased by 2.8 percent year-on-year as lower refining margins slashed operating rates. May exports fell by USD 940 million year-on-year as a fall in export unit prices and downward adjustments in operating rates led to a decrease in volume.

‘Exports Grew by 3.9 percent as Consumers Rushed their Purchases Ahead of Tariffs and Makers Launched New Slim Phones’
→ In May, exports increased by 3.9 percent year-on-year as consumers rushed their purchases ahead of US tariffs and South Korean makers launched slim phones in full scale. Global smartphone shipments, which had slightly increased by less than 2 percent in Q1 2025 following last year's recovery period, saw exports to China and Vietnam increase by 35.3 percent and 7.8 percent, respectively. April production decreased compared to the first quarter but increased by 3.9 percent year-on-year, and shipments increased by 1.9 percent as South Korean makers stabilized the production of new smartphones (e.g., Galaxy S25 Edge) after intensively producing them since March and adjusted inventories. April imports fell by 7.7 percent year-on-year due to a decline in smartphone part imports.

‘Breaking Export Records One After Another’
→ May exports reached USD 13.8 billion, up 21.2 percent year-on-year, to break the record for the month of May and continue the strong performance of semiconductor exports. The semiconductor manufacturing production index continued its upward trend in April to stand at 191.3, down 2.9 percent month-on-month but up 21.8 percent year-on-year.

‘May Exports Contracted Sharply, Affected by US Tariffs’
→ May exports decreased by 18.0 percent year-on-year as US tariffs dampened demand. The April production index was 68.8, down 0.6 percent year-on-year and 6.4 percent month-on-month.