Economic Bulletin | KDI 경제교육·정보센터

Economic Trends

Current Economic Trends

In February, industrial production, services production, retail sales, facilities investment, andconstruction investment all increased. In March, the growth in the number of employed personscontinued to increase and consumer prices grew at a faster pace. In February, total production (up 0.6% m-o-m and up 1.2% y-o-y) increased, as industrial production (up1.0% m-o-m and up 7.0% y-o-y), services production (up 0.5% m-o-m and up 0.8% y-o-y), andconstruction (up 1.5% m-o-m and down 21.0% y-o-y) rose. In February, retail sales (up 1.5% m-o-m and down 2.3% y-o-y), facilities investment (up 18.7% m-o-mand up7.7% y-o-y), and construction investment (up 1.5% m-o-m and down 21.0% y-o-y) all climbed up. In March, exports grew 3.1 percent from a year ago for two months in a row. Average daily exports also5.5 percent compared to the previous year. In March, the Consumer Sentiment Index (CSI) fell by 1.8 points month-on-month to 93.4. TheComposite Business Sentiment Index (CBSI) increased by 1.4 points to 86.7 in March, while the CBSIoutlook for April dropped by 2.4 points to 85.6. In February, the cyclical indicator of the coincident composite index and the cyclical indicator of theleading composite index decreased by 0.1 point, respectively. In March, the number of employed persons grew by 193,000 jobs compared to the previous year and theunemployment rate edged up by 3.1 percent from a year ago. In March, the Consumer Price Index (CPI) climbed by 2.1 percent year-on-year due to processed foodand public service prices, despite a slowdown in price increases of agricultural, livestock, fisheries andpetroleum products. The index when excluding food and energy prices increased by 1.8 percent. In March, Korean equity prices rose, yields for Korean Treasury Bond fell, and the Korean Won weakenedagainst the dollar. In March, housing prices rose (up 0.01% m-o-m) and Jeonse (lump-sum deposits with no monthlypayments) prices also increased (up 0.03% m-o-m). Recently, the Korean economy has faced mounting downward pressure, as the recovery of domesticdemand particularly in consumption and construction investment remains sluggish, whileemployment challenges persist in vulnerable sectors. These difficulties have been furthercompounded by deteriorating external conditions stemming from the imposition of tariffs by theUnited States. The global economy is facing heightened concerns over increased volatility in global financial marketsand a slowdown in trade and growth, primarily due to the worsening trade environment following tariffimpositions by major economies. Along with all-out efforts to respond to trade risks promptly implementing an essential supplementarybudget to support Korean companies affected by U.S. tariffs and to strengthen industrial competitiveness the government is also continuing and reinforcing measures to revitalize the real economy, includingsupport for job creation, construction, and small businesses. * For further details, please refer to the attached file.

May 2025