South Korea’s service sector swung into contraction in July 2026, with output falling 1.3% month-over-month, according to data updated on 30 August 2026. The decline marks a sharp reversal from June 2026, when service sector output had grown 0.7% compared with May.
The latest month-over-month comparison shows that the momentum seen in June did not carry into July, as activity in services weakened on a sequential basis. The data highlight rising volatility in the sector’s short-term performance, with July’s drop fully offsetting and surpassing the previous month’s gain.
