SEOUL: South Korea's industrial output decreased for the third straight month in November, as a drop in automobile production overshadowed gains in the semiconductor sector. This decline comes amid ongoing labor strikes and a protracted slump in the construction industry, according to data released Monday.
According to Yonhap News Agency, industrial production fell by 0.4 percent in November, marking a continuous decline over the past three months. The downturn was primarily driven by a 5.4 percent reduction in automobile production, which has been significantly impacted by labor strikes among parts suppliers that began in October. "The strikes at automobile parts suppliers that began in October continued into November, significantly affecting production of finished car components," said Gong Mi-sook, an official from Statistics Korea.
Despite the challenges in the automobile sector, the semiconductor industry showed resilience, posting a 3.9 percent increase in production due to strong overseas demand. Meanwhile, the financial and insurance sector experienced a 2.9 percent decline, largely attributed to a slowdown in loan growth.
On an annual basis, the overall industrial output saw a slight decrease of 0.3 percent in November. Retail sales, however, offered a glimmer of hope by increasing 0.4 percent from the previous month, bouncing back after two months of decline. This uptick was mainly driven by a 4.1 percent rise in sales of semidurable goods such as clothing, buoyed by large consumer promotions.
In contrast, facility investment saw a notable decline of 1.6 percent in November, particularly in the machinery sector. This marked the second month of consecutive decline, though it was partially offset by a year-on-year increase of 2.6 percent, indicating a broader upward trend.
Construction investment continued its downward trajectory, with construction orders slipping 0.2 percent from October. This marked the seventh consecutive month of decline, the longest since the data began being recorded in August 1997. In response, the finance ministry has announced plans to use all available resources to stimulate domestic demand, which has struggled to recover amid ongoing political challenges.