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Korea's industrial output declines in October as chipmaking, construction slide

Published: 28 Nov. 2025, 15:55

Workers are seen on the production line of SK hynix's memory chip plant in this undated file photo. [SK HYNIX]

Korea's industrial output declined in October after a one-month rebound, with steep drops in chipmaking and construction offsetting a pickup in private spending.

Industrial production dropped 2.5 percent from a month earlier in October, according to the data from the Ministry of Data and Statistics. It was the sharpest decline since February 2020, when output fell 2.9 percent.

Industrial activity had swung back to growth in June and July after contracting in April and May, then slipped 0.3 percent in August before rising 1.3 percent in September.

Manufacturing output fell 4 percent in October, driven by a 26.5 percent plunge in semiconductor production. It was the sector’s biggest fall since October 1982, when chip output dropped 33.3 percent.

“The semiconductor boom sharply pushed up production, and that created a base effect that appears to have been stronger than ever,” said Lee Doo-won, director-general for economic trends statistics at the Data Ministry.

Construction output, which had rebounded by double digits a month earlier, fell 20.9 percent.

Retail sales rose 3.5 percent on month, reflecting firmer consumer demand.

Investment indicators weakened. Facility investment dropped 14.1 percent as spending on machinery and transportation equipment declined.

Real construction activity also slid 20.9 percent, the largest decline since records started in July 1997.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY JUNG SI-NAE [[email protected][