Economic Bulletin | KDI 경제교육·정보센터

KDI 경제교육·정보센터

Economic Information and Education Center

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Economic Trends

Current Economic Trends

In July, industrial production, services production, retail sales, and facilities investment increased,while construction investment declined. In August, the number of employed persons increased andconsumer prices rose at a slower pace. In July, total production rose (up 0.3% m-o-m and up 1.9% y-o-y), as industrial production (up 0.3%m-o-m and up 5.0% y-o-y) and services production (up 0.2% m-o-m and up 2.1% y-o-y) increased, whileproduction in construction sectors (down 1.0% m-o-m and down 14.2% y-o-y) decreased. In July, retail sales (up 2.5% m-o-m and up 2.4% y-o-y) and facilities investment (up 7.9% m-o-m anddown 5.4% y-o-y) increased. In August, exports increased by 1.3 percent from a year ago driven by robust semiconductor industryperformance and average daily exports increased by 5.8 percent compared to the previous year. In August, the Consumer Sentiment Index (CSI) rose by 0.6 points month-on-month to 111.4. TheComposite Business Sentiment Index (CBSI) increased by 1.0 points to 91.0 in August, and the CBSIoutlook for September rose by 3.4 points to 91.8. In July, the cyclical indicator of the coincident composite index fell by 0.1 point and the cyclical indicator ofthe leading composite index rose by 0.5 points. In August, the number of employed persons grew by 166,000 jobs compared to the previous year and theunemployment rate stood at 2.0 percent, up by 0.1 percent point from a year ago. In August, the Consumer Price Index (CPI) climbed by 1.7 percent year-on-year, driven by a decline inpetroleum and public services product prices. The index when excluding food and energy prices grew by1.3 percent. In August, Korean equity prices went down, yields for Korean Treasury Bond dropped, and the Korean Wonweakened against the dollar. In August, housing prices rose (up 0.06% m-o-m), and Jeonse (lump-sum deposits with no monthlypayments) prices also rose (0.04% m-o-m). Recently, the Korean economy has continued to face challenges such as a delayed recovery inconstruction investment, employment difficulties concentrated in vulnerable sectors, and concernsover slowdown in exports due to U.S. tariff measures. Nonetheless, positive signs of an economicrecovery are strengthening, with consumption rising on the back of policy support. The global economy is facing sustained volatility in the global financial markets and concerns over slowertrade and growth, primarily owing to worsening trade conditions driven by tariff measures imposed bymajor economies. Against this backdrop, the government will go all out to stimulate domestic demand by swiftlyimplementing the supplementary budget, distributing livelihood recovery consumption coupons, andorganizing large-scale discount events. At the same time, it will also make every effort to mitigate traderisks, including providing support for Korean companies affected by U.S. tariffs.

Oct 2025