FX.co ★ South Korea Industrial Output Growth Hits 5-Year Low in 2025

In 2025, South Korea's industrial production increased by 0.5% compared to the previous year, representing the slowest growth rate in five years. This modest increase was mainly attributed to robust demand in the semiconductor industry. In December, industrial output surged by 1.7% from the previous month, marking the most significant rise in four months and surpassing market predictions of a 0.5% increase. The monthly recovery was primarily driven by an uptick in semiconductor production, spurred by inventory replenishment and stronger external demand. Meanwhile, production in the automobile and machinery sectors stabilized following earlier interruptions. On an annual basis, industrial output experienced a 0.3% decline in December, an improvement from the 1.4% decrease observed in November and better than the projected 2.1% reduction.