S. Korea’s production poised for growth as consumption improves
The Korea Development Institute’s report signaled a slight increase in South Korea’s production led by improvements in consumption, Qazinform News Agency cites Yonhap.
Recently, our economy has maintained moderate production growth, led by the service sector, thanks to improvements in consumption, KDI said in its monthly economic assessment.
According to the report, South Korea saw a 1.5% monthly increase in industrial output in December, as well as a 0.9% rise in retail sales after a drop in November.
The country also posted a 3.7% upswing due to widespread improvements across multiple areas.
The report highlighted consumer spending is experiencing a gradual recovery fueled by grown household earnings and reducing interest rates, while consumers sentiment remaining positive.
In December 2025, investment in fixed assets was down 3.6% month on month, primarily resulting from a 16.1% reduction in transport equipment, including ships and aircraft. The country also posted weak investment in construction, leading to a substantial drop in output.
The KDI said that South Korea’s exports grew slightly, largely driven by rising prices for semiconductors.
Possible U.S. tariff increases and fluctuations in oil prices have increased risks to the South Korea’s economy, the report warned.
Earlier, it was reported that a South Korean startup has developed an AI platform that can predict heart attack.
