In December 2024, South Korea’s industrial activities rebounded (by 2.3 percent from the previous month and 1.4 percent year-on-year), as the resolution of disruptions in automobile production and an increase in semiconductor exports drove a big jump in mining and manufacturing production (up 4.6 percent and 5.3 percent, respectively).

In December, the mining and manufacturing industry turned around sharply (from △0.3 percent to 4.6 percent) as the end of labor strikes resolved disruptions in automobile and auto parts production and semiconductors production hit a record high. Despite decreases in face-to-face industries such as accommodation and food, the service industry rebounded (from △0.2 percent to 1.7 percent), driven by increases in semiconductor equipment, fuel wholesale, water transportation, and other sectors. Even as the sales of non-durable goods grew (by 1.0 percent), retail sales shrank (from 0.0 percent to △0.6 percent) as sales of durable goods and semi-durable goods fell (by △4.1 percent and △0.6 percent, respectively). In addition to the rebound in machinery, transportation equipment such as ships and aircrafts were significantly improved and drove an increase in capital investment (from 0.0 to 9.9 percent, recording the highest capital investment index ever [125.5S.A]). Although the civil engineering segment felt after growing in the previous month, construction completed grew (from △0.9 to 1.3 percent) as the construction segment grew. The cyclical change in the coincident index stayed flat as production in the mining, manufacturing and service industries increased while construction completed shrank. Despite the widening term spread, the cyclical change in the leading index fell, affected by the weakening economic sentiment index and others.

With the goal of managing the national economy as stable as possible, the government will focus on improving people’s livelihoods.

‘ Exports Fell by Double-digits and Turned Negative in Two Months ’
→ In November, exports fell by 12.3 percent year-on-year to mark the first drop in two months, as production disruptions led to a decrease in supply volume and demands for EVs saw a decline. In October, even as the number of imported cars registered fell, domestic demand increased by 4.0 percent year-on-year, driven by brisk sales of new models launched by Korean manufacturers. In October, production turned to growth thanks to the new model release effect and strong exports.

‘ Double-digit Growth in Production, Shipments, and Capacity Utilization Rate ’
→ Ship production expanded in October, and double-digit growth in production, shipments, and capacity utilization rate continued. In November, exports grew by 70.8 percent, driven by the delivery of high added-value ships, such as container ships and LNG carriers, which were ordered in 2022 when ship prices were high. October imports increased by 26.5 percent thanks to a large influx of cargo ships. Up to October, South Korea's cumulative order volume totaled 9.7 million CGT, up 8.0 percent year-on-year. The cumulative order backlog, which is the amount of remaining production work, was 37.9 million CGT, indicating that South Korean shipbuilders maintained a high level of order backlog equivalent to more than 3.5 years of production work and continued to selectively receive orders.

‘ Production Started Growing, Supported by Recovery in Domestic Demand ’
→ In October, production increased by 9.7 percent year-on-year, led by brisk domestic demand. In November, exports shrank by 18.9 percent year-on-year as exports to the United Stated continued declining. In October, imports increased by 4.6 percent year-on-year as domestic demand recovered and pushed up demands.

‘Exports Increased for Two Consecutive Months, but Production Remained Sluggish’
→ In October, even as export volume saw a significant increase, production fell by 3.1 percent year-on-year as the domestic demand slump in sectors such as construction worsened and dampened sales. In November, exports grew by 1.3 percent year-on-year as exports to ASEAN and other regions increased despite the intensified competition caused by global oversupply. Despite an increase in imports from China and India, October imports decreased by 0.5 percent year-on-year as sluggish domestic demand weakened demand.

‘Exports Fell by 18.7 percent Year-on-Year as International Oil Prices Continued Declining’
→ Production in October decreased by 7.1 percent year-on-year as domestic refineries cut their capacity utilization rate to cope with weak refining margins. As unit prices continued falling, November exports declined by 18.7 percent year-on-year due to a cut in volume caused by disruptions in domestic shipments and other factors.

‘Global Smartphone Market Continued to Expand, while Exports Fell, Driven by Weak Parts Exports’
→ Shipments and average selling prices (ASP) of the global smartphone market showed a rapid recovery up to the third quarter, but the trend has slowed somewhat since the fourth quarter. October production grew by 5.8 percent year-on-year, but shipments fell by 4.3 percent and inventories increased by 52.7 percent. October imports declined by 14.3 percent, with imports of smartphones shrinking by 24.0 percent year-on-year, but those of smartphone parts growing by 9.9 percent.

‘Exports Grew for 13 Straight Months’
→ In November, exports amounted to USD 12.453 billion, up 30.8 percent year-on-year, setting a new monthly record for exports. In October, the semiconductor production index was 170.8, down 17.5 percent year-on-year, and up 8.4 percent from the previous month.

‘Exports and Production Remained Weak, Affected by the Previous Year's Strong Performance and the Expansion of Overseas Production’
→ Exports in November fell by 22 percent year-on-year affected by the previous year's strong performance, China's market expansion, and increased overseas production. The production index stood at 70.7 in October, with production and shipment indices falling year-on-year, but inventories decreased at a greater rate, leaving industrial production flat from the previous month..