Economic Bulletin | KDI 경제교육·정보센터

KDI 경제교육·정보센터

Economic Information and Education Center

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Economic Trends

Current Economic Trends

In April, industrial production, services production, retail sales, facilities investment, andconstruction investment all declined. In May, the increase in the number of employed personswidened and consumer price rose at a slower pace. In April, total production fell (down 0.8% m-o-m and up 0.4% y-o-y), as industrial production (down 0.9%m-o-m and up 4.9% y-o-y), construction (down 0.7% m-o-m and down 20.5% y-o-y) and servicesproduction (down 0.1% m-o-m and up 0.7% y-o-y) decreased. In April, retail sales (down 0.9% m-o-m and down 0.1% y-o-y), facilities investment (down 0.4% m-o-mand up 8.4% y-o-y), and construction investment (down 0.7% m-o-m and down 20.5% y-o-y) alldropped. In May, exports decreased by 1.3 percent from a year ago. However, average daily exports increased by1.0 percent compared to the previous year. In May, the Consumer Sentiment Index (CSI) rose by 8.0 points month-on-month to 101.8. TheComposite Business Sentiment Index (CBSI) increased by 2.8 points to 90.7 in May, and the CBSI outlookfor June rose by 3.2 points to 89.5. In April, the cyclical indicator of the coincident composite index and the cyclical indicator of the leadingcomposite index increased by 0.2 points and 0.3 points, respectively. In May, the number of employed persons grew by 245,000 jobs compared to the previous year and theunemployment rate fell by 0.2 percent points from a year ago. In May, the Consumer Price Index (CPI) climbed by 1.9 percent year-on-year, driven by a larger decline inagricultural and petroleum product prices and a smaller increase in prices for personal services. Theindex when excluding food and energy prices increased by 2.0 percent. In May, Korean equity prices rose, yields for Korean Treasury Bond rose, and the Korean Wonstrengthened against the dollar. In May, housing prices dropped (down 0.02% m-o-m), while Jeonse (lump-sum deposits with no monthlypayments) prices remained stable (0.00% m-o-m). Recently, the Korean economy has continued to face downward pressure, as the recovery of domesticdemand including consumption and construction investment remains sluggish, while employmentchallenges persist particularly in vulnerable sectors. In addition, external conditions have worseneddue to the imposition of tariffs by the United States, leading to a slowdown in exports. The global economy is facing sustained volatility in global financial markets and concerns over slowertrade and growth, primarily owing to the worsening trade conditions driven by tariff measures imposed bymajor economies. The government plans to swiftly formulate and implement a supplementary budget aimed at supportingeconomic recovery, boosting consumption, and assisting vulnerable groups and small businesses. At thesame time, all efforts will be made to respond to trade risks, including support measures for domesticcompanies affected by U.S. tariff measures. * For further details, please refer to the attached file.

Jul 2025