FX.co ★ South Korea Industrial Output Falls the Most in 7 Months

South Korea’s industrial production fell 3.0% month-on-month in May 2026, deepening from a 0.7% decline in April and marking the sharpest drop since October. The downturn was driven by a faster contraction in manufacturing output (-3.0% vs -0.8% in April), with semiconductor and pharmaceutical production exerting the greatest drag. By contrast, automobile production increased. Manufacturing output weakened for both domestic (-5.0% vs -4.2%) and overseas (-2.6% vs +2.4%) demand. Meanwhile, services activity rose 1.3%, rebounding from a 0.9% decline in the prior month. On a year-on-year basis, overall industrial production slipped 0.9% in May, reversing a 1.5% gain in April and recording its first decline in three months.