The S&P Global South Korea Manufacturing PMI climbed to 54.8 in May 2026 from 53.6 in April, signaling the strongest expansion since March 2021. Output and new orders rose at their fastest pace in roughly five years, supported by firmer domestic demand and inventory accumulation as firms moved to hedge against rising costs. Production growth likewise reached a five-year high, and purchasing activity increased at the sharpest rate since July 2021.
Robust demand prompted manufacturers to expand their workforces, with employment growing at the fastest pace since March 2013. Backlogs of work also increased for a fifth consecutive month. At the same time, suppliers’ delivery times continued to lengthen, reflecting raw material shortages and disruptions related to the war in the Middle East.
Input cost inflation remained close to April’s record rate, driven by higher raw material and oil prices as well as a weaker currency. Selling-price inflation also stayed among the highest levels recorded in the survey’s history. Finally, business confidence strengthened, reaching a three-month high.
