Ministry of Economy and Finance

In May 2025, overall industrial production decreased (-1.1% m-o-m, -0.8% y-o-y) for the second consecutive month, as output in both mining and manufacturing (-2.9%, +0.2%) as well as in services (-0.1%,+1.0%) fell.   While retail sales remained flat (0.0% m-o-m, -0.2% y-o-y), facility investment continued to adjust following a sharp 21.3% increase in February, with a decline in May (-4.7% m-o-m) but a continued rise on a yearly basis. (+7.5% y-o-y). The construction sector also continued on a downward trajectory (-3.9%, -20.8%), reflecting ongoing adjustments following accumulated overinvestment.                                                                                                                                                                                                                                                                                                                                (%)        2024 2025 2024   Q1   Apr May Q1 Q2 Q3 Q4 Jan Feb Mar Entire industry - 0.4 0.0 -0.4 0.4 0.0 -1.6 0.7 1.1 -0.8 -1.1 1.5 2.9 2.2 0.5 0.6 -0.5 -3.8 1.2 1.1 0.5 -0.8 Mining and manufacturing - -0.8 1.8 -0.5 1.5 0.2 -2.9 0.7 3.0 -0.6 -2.9 4.1 5.3 5.2 2.4 3.5 1.9 -5.0 6.5 4.5 5.1 0.2 Services - 0.3 0.0 -0.3 0.7 0.3 -0.9 0.8 0.1 -0.1 -0.1 1.1 2.1 1.6 0.2 0.6 0.4 -0.9 1.0 0.9 0.9 1.0   (%)       2024 2025 2024   Q1   Apr May Q1 Q2 Q3 Q4 Jan Feb Mar Retail sales - -2.2 -0.3 0.7 -0.4 0.4 -0.6 1.8 -1.0 -0.9 0.0 -2.1 -1.6 -3.1 -1.5 -2.0 -0.3 0.2 -1.8 0.7 -0.1 -0.2 Facilities investment - -1.5 -1.4 10.2 -1.8 -1.7 -17.2 21.3 -0.5 -0.5 -4.7 2.9 -1.4 -3.3 11.5 5.3 5.7 -6.7 8.0 14.6 8.4 7.5 Construction Investment - 7.7 -8.2 -3.8 -5.1 -6.4 -4.5 3.0 -4.9 -1.4 -3.9 -4.7 4.0 -3.1 -9.1 -9.7 -21.2 -27.4 -19.8 -16.3 -21.1 -20.8   Amid heightened external uncertainties and sustained weakness in domestic demand, key industrial activity indicators – including overall industrial production – largely continued to fall for a second consecutive month. Under these circumstances, the government is committed to swiftly implementing a supplementary budget (KRW 30.5 trillion, as proposed) aimed at revitalizing domestic demand and stabilizing people’s livelihoods, while also making all-out efforts to address trade-related risks such as U.S. tariff negotiations and minimizing the impact on Korean businesses. Please refer to the attached files. 

Statistics Korea released 'Monthly Industrial Statistics, May 2025' report on June 30, 2025 The Index of All industry production in May decreased by 1.1 percent from the previous month. Please refer to the attached pdf for the full report. 

The Ministry of Economy and Finance plans to issue Korea Treasury Bonds worth approximately 18,500 billion won in July 2025 through competitive bidding.   Auction Schedule, July 2025 (Unit: KRW billion) Name Auction Notice Auction Date Settlement Date Issue Date Type Volume 2Y KTB 02625-2703 (25-1) June 26 June 30 July 1 March 10, 2025 F1 2,400 3Y KTB 02250-2806 (25-4) July 2 July 7 July 8 June 10, 2025 F 4,300 5Y KTB 02625-3003 (25-3) July 16 July 21 July 22 March 10, 2025 F 3,200 10Y KTB 02625-3506 (25-5) July 9 July 14 July 15 June 10, 2025 F 1,800 20Y KTB 02875-4409 (24-10) July 17 July 22 July 23 September 10, 2024 F 500 30Y KTB 02625-5503 (25-2) June 26 July 1 July 2 March 10, 2025 F 5,400 50Y KTB 02750-7409 (24-11) July 8 July 11 July 14 September 10, 2024 F 600 Conversion offer Inflation-linked July 1 July 4 July 8 June 10, 2025 F 100 Conventional July 10 July 15 July 17 March 10, 2025 F 200   FXB 00000-2607 (25-7) July 15 July 18 July 21 July 10, 2025 N/A 1,200 1.       Fungible issue   * Under a fungible issue system, new KTBs issued within a specified period (six-month period for 2Y, 3Y, 5Y, 10Y and 30Y KTB, one-year period for 20Y, and two-year period for KTBi and 50Y KTB) are regarded as the same KTB issue.     1) Non-competitive bids option I   For retail investors, KTBs worth 3,520 billion won (no more than 20% of the offered amount in the auction excluding 50Y KTBs) will be allocated first at the highest accepted bid rate.   2) Non-competitive bids option II   A non-competitive purchasing option II is granted to primary dealers (PD) whereby PDs can make additional purchases of 5-30%* of the accepted bid amount within three business days after the auction.   * Up to 20%p of the option is granted to the top-performing PDs, 15%p to the 2nd best-performing PDs, 10%p to the 3rd best-performing PDs, and 5%p to the rest, according to their market-making performances for the last six months. MOEF will grant additional 5-10%p to best performing PDs in the monthly evaluation.   3) Non-competitive bids option III   KTB STRIPS* are supplied on the third business day after the auctions, 234 billion won for 3Y and 5Y KTBs, 284 billion won for 10Y and 30Y KTBs, and 180 billion won for 20Y KTBs. PDs that have obtained the right to purchase these KTB STRIPS can make purchases of up to 20 billion won.   ＊Non-competitive option Ⅵ Details have yet to be decided. If non-competitive option Ⅵ needs to be implemented, the Ministry will make an announcement on July 17 with a detailed plan.   4) Buyback   Date KTBs to be purchased Amount July 16 10:40-11:00 am   KTB 03250-2603 (24-3) KTB 05750-2603 (06-1) KTB 03125-2606 (23-4) KTB 01500-2612 (16-8)  KTB 03875-2612 (23-10) KTB 05250-2703 (07-3)   KRW 2,000 billion   * Further details will be provided on July 11 through the BOK website.   5) Conversion offer   Date KTB to be issued KTBs or KTBis to be purchased Amount July 15 10:40-11:00 am 30Y KTB 02625-5503 (25-2) (Maturing on March 10, 2055)   KTB 04000-3112 (11-7) KTB 03375-3206 (22-5)  KTB 04250-3212 (22-14) KTB 03750-3312 (13-8)  KTB 04125-3312 (23-11)  KTB 03250-4209 (22-11)   * Further details will be provided on July 10 through the BOK website.   KRW 200 billion July 4 10:40-11:00 10Y KTB 02625-3506 (25-5) (Maturing on June 10, 2035)   KTBi 01000-2606 (16-5) KTBi 01750-2806 (18-5) KTBi 01125-3006 (20-5) KTBi 01625-3206 (22-6)   * Further details will be provided on July 1 through the BOK website.   KRW 100 billion   Please refer to the attached PDF.