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Korea’s industrial output drops for third straight month despite chip sector gains

Published: 30 Dec. 2024, 10:32 Updated: 30 Dec. 2024, 18:31

Industrial workers [YONHAP]

Korea's industrial output fell from a month earlier in November on dwindling automobile production despite robust growth in the chip sector, data showed Monday.

Industrial production went down 0.4 percent, marking the third consecutive month of decline, according to the data compiled by Statistics Korea.

The decline was attributed to a 5.4 percent on-month drop in automobile production, driven largely by labor strikes in the sector.

In contrast, the semiconductor sector posted a 3.9 percent on-month increase, fueled by strong overseas demand.

"The strikes at automobile parts suppliers that began in October continued into November, significantly affecting the production of finished car components," said Gong Mi-sook, an official from Statistics Korea. "Semiconductor production maintains its strong performance."

In on-year terms, overall industrial output declined 0.3 percent in November.

Retail sales, a key indicator of private spending, grew 0.4 percent from the previous month, rebounding after two consecutive months of decline.

The growth was driven by a 4.1 percent increase in sales of semidurable goods, such as clothing, ahead of the winter season.

However, in on-year terms, retail sales dipped 1.9 percent, continuing a longer-term downward trend.

Facility investment saw a sharp decline in November, falling 1.6 percent from the previous month, primarily due to a slump in the machinery sector.

This marked the second consecutive month of decline.

Nevertheless, the agency said the decrease was partially influenced by a base effect from preceding strong growth.

Compared to a year earlier, facility investment rose by 2.6 percent, continuing an overall upward trend.

Construction investment weakened, with construction orders slipping 0.2 percent from a month earlier, marking the seventh consecutive month of decline, the longest losing streak since the agency began compiling relevant data in August 1997.

The Ministry of Economy and Finance said the government plans to deploy all available resources to boost domestic demand, which has had a slower-than-expected recovery amid ongoing political turmoil.

Yonhap