Galaxy S24 shoots up Korea's industrial output for the third month

Containers are stacked at a port in Busan on Feb. 21, 2024. [NEWS1]

Korea’s industrial output rose for the third straight month in January, driven by the production of communication and broadcasting equipment, data showed Monday.

Industrial output advanced 0.4 percent in the first month of 2024 from the previous month, bolstered by 46.8 percent growth in production of communication and broadcasting equipment, according to Statistics Korea data.

The agency attributed that surge to the expanded production of Samsung Electronics’ Galaxy S24, which launched in January. The category plunged 33.7 percent in December and grew 8.5 percent in November.

Output in the mining and manufacturing sector decelerated 1.3 percent due to an 8.6 percent on-month fall in semiconductor production.

The monthly growth of the country’s industrial output rose 0.4 percent in December and 0.3 percent in November. January marked the first time in two years that industrial output has increased for three consecutive months.

The metric posted an on-year gain of 7.3 percent.

Output in the service sector edged up 0.1 percent in January despite a 1 percent fall in the output of wholesale and retail while those of telecommunications and real estate expanded 4.9 percent and 2.6 percent, respectively.

Retail sales, a gauge of private spending, grew 0.8 percent on month in January, helped by sales of nondurable goods.

Sales of durable and semi-durable goods fell 1 percent and 1.4 percent, respectively. But those of nondurable goods, like food and cosmetics, climbed 2.3 percent alongside travel demand in time for winter vacation and new year holidays, when people often exchange gifts.

The government attributed weak sales of durable goods to contracted sales of cars due to the reduced subsidy for electric vehicles. Sales of semi-durable goods weakened due to the base effect of apparel sales last winter over the cold snap.

Facility investment contracted 5.6 percent in January from the previous month, driven by transportation equipment's tumbling 12.4 percent and machinery's on-month fall of 3.4 percent.

Construction orders fell 53.6 percent on year, its largest decline in more than 13 years.

“Korea’s economy faces uncertainties in domestic consumption amid a recovery centered on manufacturing and exports,” said the Ministry of Economy and Finance in a statement.

“From the production side, a continued recovery of core industries, like chips, as well as the spreading [belief in a] soft landing of the global economy are optimistic signs. But supply chain risks triggered by geopolitical instability and uncertainties of monetary policy in key countries caused by global inflation,” are pressuring the economy, the ministry added.

BY JIN MIN-JI [jin.minji@joongang.co.kr]