SEOUL: South Korea's industrial output experienced its third consecutive month of decline in November, driven primarily by a significant reduction in automobile production, even as the semiconductor sector showed robust growth, data released Monday revealed.
According to Yonhap News Agency, industrial production decreased by 0.4 percent in November compared to the previous month. This decline is largely attributed to a 5.4 percent drop in automobile production, a consequence of ongoing labor strikes in the sector. Meanwhile, the semiconductor industry recorded a 3.9 percent increase, buoyed by strong overseas demand. "The strikes at automobile parts suppliers that began in October continued into November, significantly affecting production of finished car components," stated Gong Mi-sook, an official from Statistics Korea. "Semiconductor production maintains its strong performance."
On a year-over-year basis, the overall industrial output also fell by 0.3 percent in November. However, retail sales, a key measure of private consumption, rose by 0.4 percent from the previous month, rebounding after two months of decline. The increase in retail sales was led by a 4.1 percent rise in semidurable goods, such as clothing, as consumers prepared for the winter season. Despite this monthly uptick, retail sales decreased by 1.9 percent compared to November of the previous year, continuing a longer-term downward trend.
Facility investment experienced a notable contraction, decreasing by 1.6 percent in November from the previous month, primarily due to a downturn in the machinery sector. The construction industry also faced challenges, with construction orders decreasing by 0.2 percent, marking the seventh consecutive month of decline. This represents the longest losing streak since the agency began collecting data in August 1997.
The finance ministry indicated that the South Korean government is planning to utilize all available resources to stimulate domestic demand, which has seen a slower-than-expected recovery amid ongoing political instability. The ministry emphasized the need for strategic interventions to support economic growth and mitigate the effects of the current industrial challenges.