FX.co ★ South Korea Industrial Output Unexpectedly Falls

South Korea’s industrial production fell 1.9% month-on-month in January 2026, reversing a 1.5% gain in December and defying market expectations for a 0.5% increase. The decline was driven primarily by sharp drops in construction and manufacturing activity, which contracted by 11.3% and 2.1%, respectively. In contrast, private consumption and facility investment both registered increases. The weaker-than-expected figures cast doubt on the strength of the country’s near-term growth momentum and highlight persistent challenges in the manufacturing sector. On a year-on-year basis, however, industrial output jumped 7.1% in January, up from a 1.4% rise in December and far surpassing the consensus forecast of 2.2%.