Economic Bulletin | KDI 경제교육·정보센터

Economic Trends

Current Economic Trends

In December 2024, industrial production, services production, facilities investment, and constructioninvestment increased, while retail sales decreased from the previous month. In January 2025, jobgrowth rebounded while the growth of consumer prices accelerated. In December, total production (up 2.3% m-o-m and up 1.4% y-o-y) rose, as industrial production (up4.6% m-o-m and up 5.3% y-o-y), services production (up 1.7% m-o-m and up 1.2% y-o-y) increased.In December, retail sales (down 0.6% m-o-m and down 3.3% y-o-y) decreased, while facilitiesinvestment (up 9.9% m-o-m and up 13.1% y-o-y) and construction investment (up 1.3% m-o-m anddown 8.3% y-o-y) increased. In January, exports fell by 10.3 percent from a year ago due to the fewer working days. Average dailyexports surged by 7.7 percent compared to the previous year. In January, the Consumer Sentiment Index (CSI) increased by 3.0 points month-on-month to 91.2. TheComposite Business Sentiment Index (CBSI) moved down by 1.4 points to 85.9 in January, while theCBSI outlook for February moved up by 2.5 points to 85.4. In December, the cyclical indicator of the coincident composite index remained unchanged, while thecyclical indicator of the leading composite index decreased by 0.2 points. In January, employment grew by 135,000 jobs compared to the previous year and the unemploymentrate remained unchanged at 3.7 percentage from a year ago. In January, the Consumer Price Index (CPI) grew by 2.2 percent year-on-year. The index when excludingfood and energy prices increased by 1.9 percent. In January, Korean equity prices surged, yields for Korean Treasury Bond fell, and the Korean Wonstrengthened against the dollar. In January, housing prices fell (down 0.1% m-o-m) and Jeonse (lump-sum deposits with no monthlypayments) prices also declined (down 0.02% m-o-m). Recently, the Korean economy has experienced delayed recovery in domestic demand includingconsumption and construction investment, along with sustained challenges in employmentparticularly in vulnerable sectors. Moreover, economic sentiment has worsened amid escalatingdomestic and external uncertainties, which are weighing downward pressure on the economy. Amid ongoing geopolitical risks, the global economy is facing increased uncertainties in trade, includingthe potential imposition of tariffs by major countries. Based on the livelihood and economic response plan for the first quarter, all available means will bemobilized to swiftly prepare and implement improvement measures for each area including employment,public finance, and small businesses. Furthermore, the government will proactively respond to tradeenvironment uncertainties, including supporting domestic companies that may be affected by theimposition of U.S. tariffs and establishing a fund for advanced strategic industries.

Mar 2025