Economic Bulletin, June 2025
Current Economic Trends
Overview
In March, industrial production increased while services production, retail sales, facilities investment, and construction investment declined. In April, the increase in the number of employed persons widened and consumer price growth maintained its pace.
In March, total production (up 0.9% m-o-m and up 1.3% y-o-y) rose, as industrial production (up 2.9% m-o-m and up 5.3% y-o-y) increased although construction (down 2.7% m-o-m and down 14.7% y-o-y) and services production (down 0.3% m-o-m and up 0.7% y-o-y) decreased.
In March, retail sales (down 0.3% m-o-m and up 1.5% y-o-y), facilities investment (down 0.9% m-o-m and up 14.1% y-o-y), and construction investment (down 2.7 m-o-m and down 14.7% y-o-y) all dropped.
In April, exports grew 3.7 percent from a year ago, increasing three months in a row. Average daily exports fell by 0.7 percent compared to the previous year.
In April, the Consumer Sentiment Index (CSI) rose by 0.4 points month-on-month to 93.8. The Composite Business Sentiment Index (CBSI) increased by 1.2 points to 87.9 in April, and the CBSI outlook for May rose by 0.7 points to 86.3.
In March, the cyclical indicator of the coincident composite index and the cyclical indicator of the leading composite index increased by 0.3 points and 0.2 points, respectively.
In April, the number of employed persons grew by 194,000 jobs compared to the previous year and the unemployment rate fell by 0.1 percent point from a year ago.
In April, the Consumer Price Index (CPI) climbed by 2.1 percent year-on-year as the accelerated decline in agricultural product prices and a shift to a decline in petroleum prices were offset by a larger increase in livestock and fishery product prices. The index when excluding food and energy prices increased by 2.1 percent.
In April, Korean equity prices rose, yields for Korean Treasury Bond fell, and the Korean Won strengthened against the dollar.
In April, housing prices dropped (down 0.02% m-o-m), while Jeonse (lump-sum deposits with no monthly payments) prices remained stable (0.00% m-o-m).
Recently, the Korean economy has faced mounting downward pressure, as the recovery of domestic demand – particularly in consumption and construction investment – remains sluggish, while employment challenges persist in vulnerable sectors. These difficulties have been further compounded by deteriorating external conditions due to U.S. tariff measures, leading to a slowdown in exports.
The global economy is facing sustained volatility in global financial markets and concerns over slower trade and growth, primarily owing to the worsening trade conditions driven by tariff measures imposed by major economies.
Along with all-out efforts to respond to trade risks – including the swift execution of a 13.8 trillion won supplementary budget to support Korean companies affected by U.S. tariffs and to strengthen industrial competitiveness – the government is also continuing and reinforcing measures to revitalize the real economy, such as support for job creation, construction, and small businesses.
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