FX.co ★ South Korea Manufacturing Contracts for 4th Straight Month

In May 2025, the S&P Global South Korea Manufacturing PMI experienced a slight uptick, reaching 47.7 from April's 47.5, yet it remained in a contractionary phase for the fourth consecutive month. Both production and new orders saw accelerated declines, with new orders experiencing their sharpest drop since June 2020. There was also a noted decrease in export demand, coupled with reductions in purchasing activity and work backlogs. Respondents attributed these challenges to a tough domestic economic landscape and uncertainty regarding global trade policies, which were significant factors impacting demand. Despite the overall downturn, there were some positive developments. Manufacturing companies increased their staffing for the first time in seven months, fueled by growing confidence in the year ahead. Many companies were optimistic that global trade tensions would subside and that domestic conditions would stabilize. On the pricing side, input cost inflation continued to ease, with May marking the smallest rise in input costs since October 2024.