In September 2025, total industrial production rose (1.0% m/m; 6.7% y/y) as a sharp increase in services output (1.8% m/m; 6.2% y/y) more than offset declines in mining and manufacturing (-1.2% m/m; +11.6% y/y) and public administration (-1.2% m/m; +1.0% y/y).

In mining and manufacturing, output declined as a sharp increase in semiconductor production was outweighed by significant contractions in automobiles and general machinery due to base effects from the previous month. In services, accommodation and food services and arts, sports, and leisure decreased, but wholesale and retail trade, finance and insurance, and information and communications increased, resulting in net growth. Retail sales fell as weaker sales of semi-durables and non-durables more than offset higher sales of durables such as telecommunications equipment. Facility investment (capex) rose markedly, with strong gains in machinery—including semiconductor-manufacturing equipment—and in transportation equipment such as aircraft and ships. Construction completed increased sharply as both building and civil engineering rose. The Composite Coincident Index (CCI, cyclical component) rose as increases in imports and non-agricultural employment offset weaker domestic shipments. The Composite Leading Index (CLI, cyclical component) also rose, with gains in the KOSPI and in the export-import price ratio outweighing a decline in construction orders.

Key September indicators reaffirm the recovery trend since the launch of the new administration: total industrial production posted the largest monthly gain in three months (last seen in June). On a quarterly basis, total industrial production in Q3 recorded the strongest increase in eight quarters. Policy efforts should be strengthened to broaden and sustain the recovery momentum.

‘ Production in July maintained its upward trend, supported by concurrent gains in domestic sales and exports’’
→ August exports rose 4.0% y/y, driven by growth of eco-friendly vehicles. July domestic sales climbed 1.0% y/y, reflecting brisk sales of eco-friendly models and the positive impact of new model launches. July production continued its year-on-year expansion, underpinned by solid growth in both exports and domestic demand.

‘Higher yard utilization drove output growth’
→ July output rose 30.8% y/y as yard utilization improved. August exports increased 11.8% y/y, reflecting higher newbuilding prices. July imports surged 50.8% y/y on large inflows of foreign-built vessels. In July, global new order intake fell 51.2% y/y, while Korea fared better with a comparatively smaller 36.5% decline.

‘Production returned to growth on increased facility investment’
→ July production rose 5.4% y/y supported by stronger facility investment (capex). August exports declined 10.4% y/y amid persistently weak global investment sentiment. July imports increase 8.8% y/y, reflecting higher capital-goods inflows associated with domestic capex.

‘July output growth sustained; exports fell further on U.S. tariff hikes’
→ July output rose 1.0% y/y as higher export volumes offset weak domestic demand and the onset of the summer off-season. August exports declined 15.4% y/y, reflecting reduced shipments to the U.S. amid tariff hikes, softer demand in major markets during the seasonal lull, and lower average selling prices (ASPs). July imports increased 1.2% y/y despite subdued domestic demand, driven by larger inflows of low-priced Chinese steel.

‘August exports declined 4.7% y/y as lower crude prices depress unit prices’
→ July production rose 5.0% y/y as refining margins rebounded, lifting refinery utilization rates to their highest level this year. Although August export volumes were flat y/y, export value fell by USD 210 million on weaker unit prices.

‘August exports declined 14.1% despite higher shipments of finished smartphones, as component demand from China and ASEAN weakened’
→ The global smartphone market posted a modest uptick in Q2, but since August uncertainty around trade barriers—including U.S. tariffs—has emerged, dampening growth in the entry-level Android segment. July production fell 8.0% y/y and capacity utilization decreased 11.1%, while shipments edged up 0.1% y/y and inventories decreased 10.1% y/y. July imports rose 7.5% y/y, led by smartphones.

‘Monthly export volume set a new all-time high’’
→ In August, semiconductor export value reached USD 15.01 billion, marking a 27.1% increase y/y, setting a record high for monthly exports and extending the sector’s export upcycle. Production in July declined 3.6% m/m, but it rose 20.5% y/y, indicating the underlying growth trend remains intact.

‘August exports declined y/y despite a m/m uptick on new smartphone launches’
→August exports fell 9.2% y/y, even as they rose m/m on the back of smartphone launch cycle, reflecting soft end-market demand for key set products. July production increased 5.3% y/y and 20.9% m/m, marking a solid rebound in panel output.