Current Economic Trends
In August, total industrial production, retail sales, and facility investment decreased. In September,growth in the number of employed persons slowed, while the month-on-month increase in consumerprices moderated. In August, output increased in the construction sector (up 1.9% m-o-m and up 1.3% y-o-y) and the servicessector (up 0.5% m-o-m and up 4.6% y-o-y), but it declined in the industrial sector (down 4.8% m-o-m anddown 2.2% y-o-y). As a result, the overall industrial production declined by 1.3 percent month-on-month,while increasing by 1.9 percent year-on-year. The cyclical indicator of the coincident composite index for August rose by 0.5 points and the cyclicalindicator of the leading composite index decreased by 0.1 point. In August, retail sales fell (down 1.8% m-o-m and down 0.3% y-o-y), and facility investment moved down(down 9.5% m-o-m and up 16.1% y-o-y). The consumer sentiment index (CSI) climbed by 2.1 points month-on-month to 106.6 in September. Thecomposite business sentiment index (CBSI) went down by 0.5 points to 99.1 in September and the CBSIoutlook for October remained unchaged at 99.6. In September, exports grew by 83.5 percent year-on-year, supported by strong exports of semiconductors,computers, and cosmetics. Average daily exports rose by 104.9 percent in September compared to thesame month of last year. In September, the number of employed persons grew by 113,000 year-on-year, with the unemploymentrate declining by 0.1 pecent point from a year earlier. The consumer price index (CPI) climbed by 2.9 percent year-on-year (3.1% in August 2.9% in September),with the index excluding food and energy rising by 2.8 percent, the index excluding agricultural productsand petroleum products by 2.7 percent, and the CPI for living necessities by 2.5 percent. In August, stock prices moved up, Korean Treasury Bond yields rose, and the Korean won strengthenedagainst the U.S. dollar. In September, both housing prices (up 0.30% m-o-m) and Jeonse (lump-sum deposits with no monthlypayments) prices (up 0.34% m-o-m) climbed. The Korean economy continues to show signs of a robust recovery, supported by strong exportgrowth, solid investment growth, and a gradual improvement in consumption. However, uncertainties stemming from the Middle East conflict have increased somewhat. Pressures onlivelihoods also persist due to rising inflationary pressures from high oil prices and challenging employmentconditions for vulnerable groups. The global economy continues to grow at a moderate pace, although uncertainties surrounding theMiddle East conflict and U.S. tariff measures remain. The government plans to make every effort to ensure stable supply and demand for key items to minimizethe impact of the Middle East conflict, while strengthening policy efforts to stabilize livelihoods and reduceeconomic polarization so that the benefits of growth can spread throughout the economy. * For further details, please refer to the attached file.
Nov 2026
