Chip sector fuels Korea's industrial rebound in August

A Statistics Korea official holds a briefing on Korea's monthly industrial output report in the central city of Sejong on Oct. 4. [YONHAP]

Korea's industrial output rebounded in August from a month earlier on the back of a robust recovery in the chip sector, data showed Wednesday.

The industrial output advanced 2.2 percent in August from the previous month, after slipping 0.8 percent in July, according to Statistics Korea.

It was the sharpest growth since the 2.3 percent rise tallied in February 2021.

The rebound came after the country's industrial output, retail sales and facility investment all lost ground at the same time in July, for the first time since January.

The output in the mining, manufacturing, gas and electricity industries gained 5.5 percent on the back of a robust performance in the chip sector, which rose 13.4 percent over the period.

In September, exports of semiconductors fell for the 14th month in a row to $9.94 billion. But global chip sales have shown signs of recovery in recent months, and September saw the highest monthly export value so far this year.

The output from electric components, on the other hand, moved down 3.8 percent on-month in August.

The service sector saw its output edge up 0.3 percent on the back of the arts, sports and leisure industries, which advanced 6.2 percent.

Retail sales, a gauge of private spending, fell 0.3 percent over the period due to weak demand for durable goods, such as automobiles, which slipped 1.1 percent.

The demand for semidurable goods, such as clothing, also fell 0.6 percent on-month in August.

Facility investment jumped 3.6 percent. The rise was driven by the shipbuilding industry, which advanced 13.1 percent, with the machine sector also posting a 0.6 percent increase.

Yonhap