FX.co ★ South Korea Manufacturing Sector Contracts Again

In October 2025, the S&P Global South Korea Manufacturing PMI decreased to 49.4 from 50.7 in September, indicating renewed challenges within the industry and representing the eighth contraction over the past nine months. The sector experienced declines in both output and new orders, while employment saw a slight reduction for the first time in three months. Companies attributed these setbacks to sluggish domestic conditions and the effects of U.S. tariffs, which significantly impacted production and demand, thereby affecting their purchasing and inventory strategies. Operating costs surged, primarily due to increased import expenses linked to a weakened currency and, in some instances, the impact of tariffs. Consequently, manufacturers raised the prices at which they sell their goods for the eleventh consecutive month. Despite these challenges, business confidence stayed positive, buoyed by the mass production of newly launched products. However, concerns lingered regarding the domestic economic situation and the long-term implications of tariffs.