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.

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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.