Economic Bulletin | KDI 경제교육·정보센터

Economic Trends

Current Economic Trends

In January, industrial production, services production, facilities investment, construction investment,and retail sales decreased. In February, the economy experienced an increase in the number of jobsand consumer prices grew at a slower pace. In January, total production (down 2.7% m-o-m and down 3.5% y-o-y) fell, as industrial production(down 2.3% m-o-m and down 4.1% y-o-y), services production (down 0.8% m-o-m and down 0.9%y-o-y), construction (down 4.3% m-o-m and down 27.3% y-o-y) decreased. In January, retail sales (down 0.6% m-o-m and 0.0% y-o-y), facilities investment (down 14.2% m-o-mand down 3.1% y-o-y), and construction investment (down 4.3% m-o-m and down 27.3% y-o-y)decreased. In February, exports rose 1.0 percent from a year ago due to the increased working days. Average dailyexports declined 5.9 percent compared to the previous year. In February, the Consumer Sentiment Index (CSI) increased by 4.0 points month-on-month to 95.2. TheComposite Business Sentiment Index (CBSI) decreased by 0.6 points to 85.3 in February, while the CBSIoutlook for March rose by 2.6 points to 88.0. In January, the cyclical indicator of the coincident composite index and the cyclical indicator of theleading composite index decreased by 0.4 points and 0.3 points, respectively. In February, employment grew by 136,000 jobs compared to the previous year and the unemploymentrate remained unchanged at 3.2 percent from a year ago. In February, the Consumer Price Index (CPI) grew by 2.0 percent year-on-year due to a slower increasein petroleum product prices. The index when excluding food and energy prices increased by 1.8 percent.In February, Korean equity prices rose, yields for Korean Treasury Bond fell, and the Korean Wonweakened against the dollar. In February, housing prices fell (down 0.06% m-o-m) and Jeonse (lump-sum deposits with no monthlypayments) prices also declined (down 0.01% m-o-m). Recently, the Korean economy has faced delayed recovery in domestic demand, such as consumptionand construction investment, along with sustained challenges in employment particularly invulnerable sectors. Moreover, export growth has slowed and economic sentiment has weakened dueto escalating domestic and external uncertainties, leading to heightened downward pressure on theeconomy. The global economy continues to face geopolitical risks, while trade uncertainties are increasing owing tothe implementation of tariff measures by major countries. The government will promptly push forward key initiatives from the Peoples Livelihoods ImprovementPlan Q1, 2025, including measures related to employment, construction, small businesses and financialsupport for low-income households, while continuously seeking additional support measures. At thesame time, concerted efforts will be made to respond to trade uncertainty and provide full support forexports, including enhancing assistance for businesses potentially affected by U.S. tariff impositions andestablishing the High-Tech Strategic Industry Fund.

Apr 2025