In May 2025, Korea’s total industrial production decreased for the second consecutive month (down 1.1 percent month-on-month and up 0.8 percent year-on-year) due to declines in mining and production (down 2.9 percent month-on-month and up 0.2 percent year-on-year) and services (down 0.1 percent month-on-month and up 1.0 percent year-on-year).

In May, the mining and manufacturing industry saw a significant decline despite increases in metal and petroleum refining, due to a decrease in domestic shipments and adjustments in pharmaceuticals and semiconductors, which had seen a sharp increase in March. The service industry also fell, with increases in finance and insurance offset by decreases in wholesale and retail trade, accommodation, and food services. Retail sales remained flat despite increases in durable goods (communication equipment and computers) and semi-durable goods (clothing), as sales of non-durable goods (cosmetics) declined. Despite increases in transportation equipment such as aircraft and ships, capital investment decreased as machinery, including semiconductor manufacturing machinery, declined. Construction completed shrank due to month-on-month declines in both construction and civil engineering. Despite an increase in the number of employed persons, the cyclical change in the coincident index turned downward, affected by decreases in construction completed and domestic shipments. The sentiment index improved, but the cyclical change in the leading index turned downward as well, due to sliding construction orders and machinery shipments.

In May, Korea’s industrial production weakened due to decreases in the manufacturing, service, and construction industries. On the spending side, domestic demand continued to struggle, with declines in capital and construction investment. It is necessary to make an all-out effort to revitalize domestic demand and manage trade risks.

‘April Production Continued Growing amid Brisk Hybrid Car Exports and Expanded Domestic Sales’
→April exports decreased by 2.1 percent year-on-year with exports of finished vehicles falling due to the impact of U.S. tariff on cars and the base effect from the previous year. Domestic sales in March increased by 4.9 percent year-on-year, driven by the government’s proactive policies to boost consumption. Production in March continued its growth trend, supported by expanded domestic sales and increased exports of hybrid cars.

‘March Production Continues to Surge and Expand’
→ March production showed a big jump of 45.1 percent year-on-year. April exports increased by 17.3 percent year-on-year due to the delivery of ships ordered at high prices after 2022. March imports grew by 8.1 percent year-on-year, driven by an increase in the inflow of ships and ship parts. As for global new ship orders, orders of bulk carriers, gas carriers, and tankers up to March plummeted by as much as 78 to 90 percent year-on-year as freight rates weakened and policy uncertainty from the United States heightened (review of port fees for Chinese-owned or operated vessels by the US Trade Representative).

‘March Production Continued Declining as Domestic Demand and Exports Remained Weak’
→ March production decreased by 4.3 percent year-on-year as domestic shipments declines. April exports decreased by 6.3 percent year-on-year, affected by weak global investment sentiment. March imports increased by 2.3 percent year-on-year, backed by the recovery of domestic demand and an increase in capital investment.

‘April Exports Turn to Growth, Driven by Strong Demand from Emerging Countries’
→ March production decreased by 5.8 percent year-on-year as a decline in exports of major steel products and weak domestic demand dampened sales. Despite weaker unit prices, April exports increased by 5.4 percent year-on-year, with strong demand from emerging markets such as ASEAN, India, and Latin America pushed export volumes. March imports fell by 12.0 percent year-on-year due to reduced import volumes from Southeast Asian countries and from countries subject to anti-dumping investigations, such as Japan, and weak domestic demand.

‘April Exports Fell as Unit Prices and Volume Shrank Together’
→ March production fell by 9.6 percent year-on-year, affected by regular maintenance and a decline in operating rates. April exports decreased by USD 620 million year-on-year as export unit prices fell and volume shrank due to downward adjustments in operating rates.

‘April Exports Surged, Up 26.5 Percent Year-on-Year’
→ April exports rose by 26.5 percent year-on-year, marking the third consecutive month of growth, driven by the preemptive shipment of inventory in anticipation of Trump's tariff imposition. March production increased by 13.3 percent year-on-year due to higher demand in the first quarter, with shipments rising by 23.7 percent, leading to a 28.5 percent increase in the operating rate and a 21.6 percent decrease in inventory. March imports decreased slightly by 2.5 percent year-on-year, with increases in smartphones and parts offset by a significant decline in wireless transmitters.

‘Export Continued Growing’
→April exports increased by 17.2 percent to USD 11.7 billion, breaking the record for the month of April and continuing the export boom. The March semiconductor production index rose by 26.8 percent year-on-year to 201.5 and by 13.3 percent month-on-month, indicating a significant increase in production.

‘April Exports Fell as Uncertainty in the Premium OLED Market Expanded’
→ April exports decreased by 7.6 percent year-on-year due to growing uncertainty in major markets. The production index for March was 75.1, up by 8.5 percent year-on-year and by 7.8 percent month-on-month.