Ministry of Economy and Finance

Deputy Prime Minister and Minister of Economy and Finance Koo Yun Cheol held a meeting with major exporters – including Samsung Electronics, SK Hynix, Kia/Hyundai Motor, Hanwha Ocean, and POSCO Holdings – at the Government Complex-Seoul on November 18. During the meeting, the participants reviewed the current state of exports and investment and discussed public-private cooperation measures to support investments in the United States and stabilize foreign exchange (FX) supply and demand.   DPM Koo acknowledged that, despite challenging external conditions this year, Korea’s overall exports have begun to show signs of recovery thanks to the continued efforts of Korean companies. He added that, in the process of investments in the United States following the tariff negotiations, the government will stay in close contact with the business community to ensure that such investments serve both national and corporate interests.   DPM Koo asked for close cooperation from the participating companies, as the government seeks to stabilize the exchange rate by closely working with major exporters – key players in FX supply and demand – to achieve structural improvements in the FX supply-demand balance. The participating companies concurred that a stable FX market would support smoother business operations and expressed their commitment to actively engage in forthcoming discussions.   The participants also agreed that, amid strong performance by exporters despite tough external conditions, it is essential to work together to foster a virtuous cycle in which export profits are returned and invested domestically, thereby contributing to productivity enhancement, in order to sustain the competitiveness of the Korean economy.   Last but not least, DPM Koo noted that the government will significantly increase next year’s export support budget (KRW 1.6 trillion in 2025 → KRW 4.3 trillion under the 2026 budget proposal) to strengthen the competitiveness of export-oriented companies. He added that measures are also being prepared to diversify export markets by expanding the FTA network and enhancing cooperation with the Global South. He also said that the government will actively pursue regulatory rationalization in coordination with relevant ministries to build a more business-friendly environment. Please refer to the attached files.

The Ministry of Economy and Finance (MOEF) held promotional events for the GVCM* at the United Nations Framework Convention on Climate Change (UNFCCC) 30th Conference of Parties (COP30) in Brazil – on November 13 (at the Korea Pavilion) and November 14 (at the UNFCCC Pavilion), local time.   * Global Voluntary Carbon Market Aligned with the Paris Agreement: A carbon market designed to enhance credibility beyond existing voluntary carbon markets and enable more active global trading.   This event marked MOEF’s first announcement on the international stage regarding its initiative to advance the GVCM, following the signing of a separate Contribution Agreement with the UNFCCC secretariat and a Memorandum of Understanding with the Global Green Growth Institute (GGGI) on May 29. The UNFCCC and GGGI plan to pursue a cooperation program aimed at building capacity and understanding of a GVCM that meets the high standards of environmental integrity under Article 6 of the Paris Agreement.   1. Side Event at the Korea Pavilion (Thursday, November 13, 15:30)   At the Korea Pavilion, the event was jointly hosted by the Ministry of Economy and Finance and the Presidential Commission on Carbon Neutrality and Green Growth (PCCNGG). This event began with opening remarks delivered through video by Deputy Prime Minister Koo Yun Cheol (DPM Koo), followed by congratulatory remarks from Vice Secretary-General of the PCCNGG Kim Jong Ryul, and Vice Executive Director of the Asian Forest Cooperation Organization (AFoCO) Jin Sun Pil. Presentations were delivered by the MOEF, AFoCO, the World Bank, and a civilian member of PCCNGG.   DPM Koo emphasized Korea’s plan to enhance the credibility and transparency of the carbon market using advanced technologies such as AI and blockchain and he called for support from the international community. Vice Secretary-General Kim highlighted the need for unified operation of governance, high-integrity crediting, and registry linkages under a single coherent.   Following the speeches, presentations were delivered on: Introduction to the GVCM Implementation Plan (MOEF), Introduction to Pilot Projects in the Forest Sector under the Global Voluntary Carbon Market (AFoCO), High-Integrity Carbon Market Design: World Bank’s Key Operational Experience and Insights (World Bank), and Accelerating Article 6 with Digital Innovation: The Role of GVCM & Tech-based Mitigation (PCCNGG) 2. Side Event at the UNFCCC Pavilion (Friday, November 14, 13:00)   At the UNFCCC Pavilion, MOEF, the UNFCCC, and GGGI jointly held a promotional event. The event began with opening remarks by Deputy Prime Minister Koo Yun Cheol, followed by congratulatory remarks from GGGI Executive Director Kim Sang hyup and UNFCCC Senior Director Daniele Violetti. MOEF, GGGI, and the UNFCCC then delivered presentations on their respective plans for future implementation.   Following a video opening by DPM Koo (the same as his remarks at the Korea Pavilion), Executive Director Kim emphasized in his congratulatory remarks that the GVCM provides a timely solution to overcoming the “credibility gap.” He also stated that GGGI, with its leading expertise and network in the climate field, will actively cooperate in establishing a carbon market with high integrity. Senior Director Violetti noted that the GVCM program marks a significant milestone in our collective efforts to enhance the environmental integrity and transparency of carbon markets worldwide. He also expressed that the GVCM also looks beyond Korea’s borders by facilitating South-South cooperation.   Starting in 2026, MOEF, the UNFCCC, and GGGI plan to launch full-scale initiatives, including the development of high integrity methodologies, measures to promote international trading, and programs to strengthen capacity in developing countries. Please refer to the attached files. 

In September 2025, service production, facilities investment and construction investment increased, while industrial production and retail sales declined.   Overall industrial production went up (+1.0% m-o-m, +6.7% y-o-y), driven by a rise in the construction sector (+11.4%, -4.3%) and services sector (+1.8%, +6.2%) despite a decline in the industrial sector (-1.2%, +11.6%).   Facilities investment increased (+12.7%, +12.8%), while retail sales decreased (-0.1%, +2.2%).   Exports in October 2025 moved up by 3.6% year-on-year, supported by strong semiconductor performance. Average daily exports rose by 14.0% in October compared to the same month of last year.   The consumer sentiment index (CSI) in October fell by 0.3 points month-on-month to 109.8. The composite business sentiment index (CBSI) dropped by 1.0 points to 90.6 and the CBSI outlook for November went up by 2.6 points to 91.1.   The cyclical indicator of the coincident composite index for September moved up by 0.2 points and the cyclical indicator of the leading composite index climbed by 0.1 points.   In October, the number of employed persons increased and consumer prices rose at a faster pace.   The number of employed persons grew by 193,000 compared to the same month last year, and the unemployment rate fell by 0.1 percentage points from a year ago to 2.2%.   The year-on-year consumer price index (CPI) climbed by 2.4%, driven by increases in agricultural products and petroleum prices. The CPI excluding food and energy grew by 2.2% from a year earlier.   In October, stock prices went up, Korean Treasury Bond yields rose and the Korean won weakened.   In September, both housing prices (+0.09%, m-o-m) and Jeonse[1] prices rose (+0.10%, m-o-m).   Recently, the Korean economy has shown signs of recovery, supported by improvements in domestic demand – particularly consumption – and strong performance in the semiconductor sector, indicating an economic rebound from the weakness seen in the first half of the year. However, employment challenges persist, mainly in vulnerable sectors, and uncertainties remain owing to the pace of recovery in construction investment and the impact of U.S. tariff measures.   The global economy continues to face volatility in global financial markets and concerns over slowing trade and growth, due in part to a deteriorating trade environment following tariff measures by major economies.   The government will strengthen policy efforts, including boosting domestic demand, to ensure that future growth momentum spreads across sectors, while making every effort to expand growth potential through initiatives such as the AI Transformation, Ultra-Innovative Economy flagship projects, and Productive Finance. [1] lump-sum deposits with no monthly payments Key Statistics Employment   2024                                                                                                2025 Annual Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Number of employed  (million) 28.58 28.85 28.82 28.04 27.88 28.18 28.59 28.89 29.16 29.09 29.03 28.97 29.15 29.04 Employment rate  (%) 62.7 63.3 63.2 61.4 61.0 61.7 62.5 63.2 63.8 63.6 63.4 63.3 63.7 63.4 (Seasonally adjusted)  62.7 62.7 62.7 62.3 62.9 63.0 63.0 63.1 62.9 62.8 62.8 62.8 63.1 62.8 Consumer Price Index                                                                                          (%)   2024                                                                                2025 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar  Apr    May  Jun  Jul  Aug  Sep Oct y-o-y 2.4 2.6 2.0 1.6 1.3 1.5 1.9 2.2 2.0 2.1 2.1 1.9 2.2 2.1 1.7 2.1 2.4 m-o-m -0.2 0.3 0.4 0.1 0.0 -0.3 0.4 0.7 0.3 0.2 0.1 -0.1 0.0 0.2 -0.1 0.5 0.3   Retail Sales (Percentage change from the previous period, %)   2023   2024                                               2025 Annual Q1 Q2 Q3 Q4 Annual Q1 Q2 Q3  Q4  Q1 Q2 Q3  Aug¹  Sep¹ Retail sales -1.5 -0.7 0.4 -1.3 0.8 -2.1 -2.2 -0.3 0.7 -0.4 0.4 -0.9 1.5 -2.4 -0.1 (y-o-y) - -1.4 -0.4 -2.6 -1.2 - -1.6 -3.1 -1.5  -2.0 -0.3 0.0 1.5 -0.4 2.2 1. Preliminary Facility Investment Index (Percentage change from the previous period, %)   2023                                                                2024                                           2025 Annual Q1 Q2   Q3 Q4 Annual Q1 Q2 Q3 Q4      Q1      Q2      Q3     Aug¹     Sep¹ Facility investment index -4.8 -9.0 1.5 -3.8 3.5 2.9 -1.5 -1.4 10.2 -1.8 -1.7 0.0 5.8 -1.3 12.7 (y-o-y) - -1.5 -0.9 -10.5 -5.8 - -1.4 -3.3 11.5 5.3 5.7 5.3 2.0 -0.6 12.8 1. Preliminary    Construction Completed  (Percentage change from the previous period, %)   2023                                                2024                                           2025   Annual Q1 Q2 Q3 Q4   Annual      Q1 Q2 Q3 Q4      Q1      Q2      Q3      Aug¹     Aug¹ Construction Completed (Constant) 7.8 3.4 -0.4 1.9 -4.2 -4.7 7.7 -8.2 -3.8 -5.1 -6.4 -3.2 2.4 -5.3 11.4 (y-o-y) - 12.0 9.5 10.8 0.8 - 4.0 -3.1 -9.1 -9.7 -21.2 -17.4 -12.0 -17.4 -4.3 1. Preliminary Exports and Imports  (US$ billion, y-o-y, %)   2023 2024 2025 Annual Annual         Q1          Q2          Q3         Q4          Q1         Q2                     Q3         Oct          Oct Exports 632.23 683.61 163.30 171.51 173.65 175.15 57.50 159.54 175.19 184.97 59.57 (y-o-y, %) -7.5 8.1 8.0 10.1 10.5 4.2 4.6 -2.3 2.1 6.5 3.6 Average daily exports 2.34 2.53 2.67 2.58 2.53 2.56 2.61 2.49 2.63 2.59 2.98 Imports 642.59 631.77 154.81 157.04 160.00 159.92 54.33 152.63 154.29 162.41 53.52 (y-o-y, %) -12.1 -1.6 -11.1 -1.4 6.2 0.9 1.7 -1.4 -1.7 1.5 -1.5 Average daily imports 2.38 2.34 2.31 2.36 2.34 2.33 2.47 2.38 2.32 2.27 2.68 Industrial Production (Mining, Manufacturing, Electricity and Gas Production)                 (Percentage change from the previous period, %) 2023  2024                          2025 Annual Q3 Q4 Annual Q1 Q2 Q3 Q4 Q1 Q2 Q3¹ Sep¹ Total Production2 m-o-m, q-o-q - 1.4 1.8 - -0.8 1.8 -0.5 1.5 0.2 -0.1 2.2 -1.2 y-o-y -2.6 -0.5 4.8 4.1 5.3 5.2 2.4 3.5 2.0 2.1 0.7 11.6 Manufacturing Production m-o-m, q-o-q - 1.4 1.9 - -0.8 1.8 -0.8 2.1 0.1 -0.2 1.3 -1.1 y-o-y -2.6 -0.3 5.2 4.2 5.8 5.3 2.2 3.7 2.0 2.3 6.0 12.1 Shipments (m-o-m, q-o-q) - -1.3 2.0 - -2.8 1.8 -1.0 0.8 -1.7 1.3 -0.2 -2.7 Inventory3 (m-o-m, q-o-q) - 1.5 -5.2 - -2.1 -0.5 0.1 -0.5 -4.5 0.0 2.2 Production capacity (y-o-y) -0.5 -0.6 1.5 0.7 1.0 0.9 0.4 0.6 0.7 1.0 0.4 0.7 Average operation ratio4 72.1 72.5 72.7 72.7 72.4 73.4 72.5 72.5 73.5 72.5 73.5 73.4   1. Preliminary   2. Mining, Manufacturing, Electricity and Gas Production   3. End-point (month, quarter, and year)   4. Average operation ratio for the month (or quarter)    Service Output            (Percentage change from the previous period, %)   2023                                                2024                                                 2025 Annual Q1 Q2 Q3 Q4  Annual  Q1 Q2 Q3 Q4 Q1 Q2 Q3  Jul   Aug¹    Sep¹ Service output 3.4 0.7 0.5 1.0 0.3 1.1  0.3 0.0      -0.3       0.7 0.3  0.7 0.8 0.3 -0.8 1.8     1. Preliminary Composite Indices of Coincident and Leading Indicators                                                                                            (Points)    2024                                                                                      2025 Nov Dec Jan Feb Mar Apr May Jun Jul¹ Aug¹ Sep¹ Cyclical indicator of coincident composite index 99.4 99.3 98.9 99.1 99.3 99.5 99.1 99.1 99.0 99.2 99.4 m-o-m (points) -0.3 -0.1 -0.4 0.2 0.2 0.2 -0.4 0.0 -0.1 0.2 0.2 Cyclical indicator of leading composite index 100.7 100.5 100.2 100.2 100.3 100.8 100.8 101.0 101.6 102.0 102.1 m-o-m (points) 0.0 -0.2 -0.3 -0.3 0.1 0.3 0.0 0.2 0.6 0.4 0.1 1. Preliminary   Please refer to the attached files.