The S&P Global South Korea Manufacturing PMI registered 51.1 in February 2026, edging down slightly from 51.2 in January but still marking a third consecutive month of expansion in factory activity. Firms reported stronger output growth accompanied by a solid rise in new orders. Many manufacturers pointed to a recovering semiconductor sector, which boosted sales to both domestic and overseas customers and influenced purchasing decisions during the month.
However, ongoing corporate restructuring and decisions not to replace departing staff resulted in the steepest decline in employment since September 2020. At the same time, businesses continued to face a marked increase in operating costs, largely driven by higher raw material prices and exchange rate volatility.
Looking ahead, sentiment regarding the 12‑month outlook remained positive midway through the first quarter. Confidence was underpinned by the ramp-up of mass production for newly launched products and expectations of further improvements in both domestic and external demand.
