Ministry of Finance and Economy

In December 2025, industrial production, services production, retail sales and construction investment increased, while facilities investment declined.   Production in the industrial sector (+1.5% m-o-m, +1.8% y-o-y), construction (+12.1%, -4.2%) and services (+1.1%, +3.7%) rose, leading to an increase in total industrial production (+1.5%, +1.8%).   Retail sales moved up (+0.9% m-o-m, +1.2% y-o-y), while facilities investment went down (-3.6%, -10.3%).   Exports in January 2026 climbed by 33.9% year-on-year, supported by strong semiconductor performance. Average daily exports rose by 14.0% in January compared to the same month of last year.   The consumer sentiment index (CSI) in January went up by 1.0 points month-on-month to 110.8. The composite business sentiment index (CBSI) decreased by 0.2 points to 94.0 and the CBSI outlook for February rose by 1.0 points to 91.0.   The cyclical indicator of the coincident composite index for December moved down by 0.2 points and the cyclical indicator of the leading composite index moved up by 0.6 points.   In January, the increase in the number of employed persons moderated, with consumer prices rising at a slower pace.   The number of employed persons grew by 108,000 compared to the same month last year, and the unemployment rate rose by 0.4%p to 4.1%.   The year-on-year consumer price index (CPI) climbed by 2.0%, as the pace of increase in agricultural, livestock and fisheries product prices moderated. The CPI excluding food and energy grew by 2.0% compared to the same month of last year.   In January, stock prices increased, Korean Treasury Bond yields rose and the Korean won weakened.   In December, both housing prices (+0.26%, m-o-m) and Jeonse[1] prices rose (+0.28%, m-o-m).   Recently, the Korean economy has continued to show a recovery trend, supported by improvements in domestic demand such as consumption and strong export performance led by semiconductors.   Indicators that had recorded strong gains in the third quarter temporarily adjusted in October due to base effects, but resumed a recovery trend from November onward. However, employment difficulties in vulnerable sectors persist, with uncertainties remaining over the pace of recovery in construction investment and the impact of U.S. tariff measures.   The global economy faces continued volatility in global financial markets and energy prices, along with concerns over slowing trade and growth, amid a worsening trade environment stemming from tariff measures imposed by major economies and heightened geopolitical uncertainties.   With an aim to broaden the momentum of the economic recovery going forward, the government will continue to implement proactive macroeconomic policies and pursue targeted measures to revitalize consumption, investment, and exports. It will also move forward expeditiously with the 2026 Economic Growth Strategy to boost potential growth, promote balanced growth, address economic polarization, and strengthen the foundations for a major economic leap.   [1] lump-sum deposits with no monthly payments Key Statistics Employment   2025 2026 Annual Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Number of employed  (million) 28.77 27.88 28.18 28.59 28.89 29.16 29.09 29.03 28.97 29.15 29.04 29.05 28.21 27.99 Employment rate  (%) 62.9 61.0 61.7 62.5 63.2 63.8 63.6 63.4 63.3 63.7 63.4 63.4 61.5 61.0 (Seasonally adjusted)  62.9 62.9 63.0 63.0 63.1 62.9 62.8 62.8 62.8 63.1 62.9 62.9 62.7 62.8 Consumer Price Index                                                                                          (%)   2024                                                                                                  2025 Aug Sep Oct Nov Dec Jan Feb Mar  Apr    May  Jun  Jul  Aug  Sep Oct Nov Dec y-o-y 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 2.4 2.3 m-o-m 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 -0.2 0.3   Retail Sales (Percentage change from the previous period, %)   2023   2024                                               2025 Annual Q1 Q2 Q3 Q4 Annual Q1 Q2 Q3  Q4  Annual¹ Q1 Q2  Q3  Q4¹    Oct  Nov¹  Dec¹ Retail sales -1.3 -0.7 0.4 -1.3 0.8 -2.1 -2.2 -0.3 0.7 -0.4 0.5 0.4 -0.9 1.5 0.8 3.6 -3.2 0.9 (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 0.8 0.4 0.8 1.2 1. Preliminary Facility Investment Index (Percentage change from the previous period, %)   2023                                                                2024                                           2025 Annual Q1 Q2   Q3 Q4 Annual Q1 Q2 Q3 Q4  Annual     Q1      Q2      Q3     Q4¹         Dec¹ 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 -1.7 0.0 5.7 -7.9 -3.6 (y-o-y) - -1.5 -0.9 -10.5 -5.8 - -1.4 -3.3 11.5 5.3    - 5.7 5.3 1.9 -5.4 -10.3 1. Preliminary    Construction Completed  (Percentage change from the previous period, %)   2023                                                2024                                           2025   Annual Q1 Q2 Q3 Q4   Annual      Q1 Q2 Q3 Q4  Annual      Q1      Q2     Q3    Q4¹       Dec¹ Construction Completed (Constant) 7.8 3.4 -0.4 1.9 -4.2 -4.7 7.7 -8.2 -3.8 -5.1   -16.2 -6.4 -3.2 2.7 -8.7 12.1 (y-o-y) - 12.0 9.5 10.8 0.8 - 4.0 -3.1 -9.1 -9.7       - -21.2 -17.4 -11.8 -14.3 -4.2 1. Preliminary Exports and Imports  (US$ billion, y-o-y, %)   2023 2024 2025     2026 Annual Annual          Q2          Q3         Q4 Annual       Q2          Q3        Q4            Jan          Dec       Dec Exports 632.23 683.61 171.51 173.65 175.15 61.36 709.41 175.14 184.91 189.83 69.54 65.86 (y-o-y, %) -7.5 8.1 10.1 10.5 4.2 6.6 3.8 2.1 6.5 8.4 13.3 33.9 Average daily exports 2.34 2.53 2.58 2.53 2.56 2.67 2.64 2.63 2.59 2.85 2.90 2.80 Imports 642.59 631.77 157.04 160.00 159.92 54.88 631.75 154.26 162.44 162.18 57.37 57.12 (y-o-y, %) -12.1 -1.6 -1.4 6.2 0.9 3.3 -0.0 -1.8 1.5 1.4 4.6 11.7 Average daily imports 2.38 2.34 2.36 2.34 2.33 2.67 2.35 2.32 2.27 2.44 2.39 2.43 Industrial Production (Mining, Manufacturing, Electricity and Gas Production)                 (Percentage change from the previous period, %) 2023  2024                                              2025 Annual Q4 Annual Q1 Q2 Q3 Q4 Q1 Q2 Q3       Q4 Dec¹ Total Production2 m-o-m, q-o-q - 1.8 - -0.8 1.8 -0.5 1.5 0.2 0.0 1.6 -3.2 1.7 y-o-y -2.6 4.8 4.1 5.3 5.2 2.4 3.5 2.0 2.1 6.0 -3.3 -0.3 Manufacturing Production m-o-m, q-o-q - 1.9 - -0.8 1.8 -0.8 2.1 0.1 -0.2 1.5 -2.9 1.9 y-o-y -2.6 5.2 4.2 5.8 5.3 2.2 3.7 2.0 2.3 6.1 -3.3 -0.4 Shipments (m-o-m, q-o-q) - 2.0 - -2.8 1.8 -1.0 0.2 -1.1 1.2 0.1 -1.7 2.5 Inventory3 (m-o-m, q-o-q) - -5.2 - -2.1 -0.5 0.1 -0.5 -4.5 0.0 1.2 -0.8 0.7 Production capacity (y-o-y) -0.5 1.5 0.7 1.0 0.9 0.4 0.6 0.7 1.0 1.4 0.2 -0.2 Average operation ratio4 72.1 72.7 72.7 72.4 73.4 72.5 72.5 73.5 72.5 73.6 71.5 72.7   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 Q3 Q4  Annual  Q1 Q2 Q3 Q4  Annual¹ Q1 Q2 Q3 Q4¹     Oct    Nov¹    Dec¹ Service output 3.4 1.0 0.3 1.1  0.3 0.0      -0.3       0.7     1.9 0.3  0.7 0.9 1.2 -0.5 0.5     1.1     1. Preliminary Composite Indices of Coincident and Leading Indicators                                                                                            (Points)             2025 Feb Mar Apr May Jun Jul Aug Sep Oct¹ Nov¹ Dec¹ Cyclical indicator of coincident composite index 99.1 99.3 99.5 99.1 99.1 99.0 99.2 99.4 99.0 98.7 98.5 m-o-m (points) 0.2 0.2 0.2 -0.4 0.0 -0.1 0.2 0.2 -0.4 -0.3 -0.2 Cyclical indicator of leading composite index 100.3 100.5 100.8 100.8 101.0 101.6 102.1 102.2 102.2 102.5 103.1 m-o-m (points) 0.1 0.2 0.3 0.0 0.2 0.6 0.5 0.1 0.0 0.3 0.6 1. Preliminary   Please refer to the attached files.

1. Key Points of Moody’s Ratings’ Rating Action Commentary   On February 12, Moody’s, a global credit rating agency, announced that it has affirmed Korea’s sovereign credit rating at Aa2 with a Stable outlook. Moody’s stated that its decision reflects Korea’s very high level of economic diversification and competitiveness, as well as its institutional capacity to effectively manage key challenges, while also taking into account structural issues stemming from population aging, rising government debt, and geopolitical risks.   According to Moody’s, Korea’s economic growth slowed to 1.0% year-on-year in 2025; however, growth is projected to reach 1.8% in 2026, supported by increased semiconductor exports amid the global AI boom and a recovery in capital investment.   In addition, Korea’s growth rate is expected to stabilize at around 2% over the longer term, broadly in line with other advanced economies. Such stabilization would be underpinned by productivity gains arising from AI adoption across both the corporate and public sectors, as well as capital market and corporate governance reforms and efforts to promote balanced regional development, despite a declining labor force.   Moreover, Korea’s strategy to further diversify its export portfolio, leveraging its strong competitiveness in industries such as defense and shipbuilding beyond semiconductors, is expected to provide additional support to growth. Capital market reforms are also seen as a key pillar of the government’s broader growth agenda, particularly in strengthening corporate governance among large business groups and promoting investment.   On the fiscal front, government debt has increased due to pandemic-related support measures and fiscal spending aimed at boosting consumption and growth. Debt is projected to exceed 60% of GDP by 2030, reflecting rising mandatory spending pressures, including population aging and higher defense expenditures. Nevertheless, the rating incorporates the assumption that reform measures, such as expenditure rationalization and efforts to broaden the revenue base, will achieve a moderate degree of success.   With regard to geopolitical risks, continued tensions with North Korea were highlighted. At the same time, the scope of risks has broadened in recent years to encompass domestic political polarization and trade- and investment-related uncertainties, including tariff negotiations between Korea and the U.S., and intensifying U.S.-China technology competition. Against this backdrop, diplomacy and institutional policymaking have taken on heightened importance in maintaining balanced relationships among diverse economic stakeholders.     2. Government’s Assessment and Policy Responses   The affirmation of Korea’s sovereign credit rating and outlook (Aa2, Stable) underscores Moody’s firm confidence in the strength and sustainability of the Korean economy. In particular, following last month’s affirmation by Fitch Ratings, this latest announcement marks the second consecutive confirmation by a major international credit rating agency of Korea’s rating at a stable level, reflecting the continued positive perception abroad of the economy’s internal and external soundness.   In advance of the latest rating announcement by Moody’s, the government actively engaged in the annual consultation process in close coordination with the relevant ministries. In January, Deputy Prime Minister Koo Yun Cheol met with the agency’s annual consultation mission to underscore the competitiveness of the Korean economy. Going forward, the government will maintain close communication with international credit rating agencies while making continued efforts to preserve Korea’s robust sovereign credit profile.             ※ This document is a summary of Moody’s Ratings’ press release provided for media convenience. For full details and exact language, please consult the original Moody’s Ratings release available at the link below:  https://www.moodys.com/research/Moodys-Ratings-affirms-Koreas-Aa2-issuer-rating-maintains-stable-outlook-Rating-Action--PR_518816   Please refer to the attached files. 

The Ministry of Finance and Economy is holding a three-day meeting of financial attachés from February 11 to 13. Financial attachés are currently stationed in 14 overseas missions across 12 countries*, where they engage in cooperation with host governments and international organizations in the areas of fiscal, economic, and financial affairs, monitor key policy developments, and support the Ministry’s international affairs   * The United States; China (Beijing/Shanghai); Hong Kong; Japan; Indonesia (ASEAN); Viet Nam; Thailand; the United Arab Emirates; France (OECD/Paris); Belgium; the United Kingdom; and Russia.   At the meeting, participants discussed major economic issues and policy directions in their respective host countries, as well as ways to enhance economic cooperation. Key issues and pending matters at international organizations, including the OECD and ASEAN, were also discussed. In addition, based on briefings by Ministry officials on key domestic and external economic issues, in-depth exchanges of views were held between the Ministry and the financial attachés on major issues at home and abroad.   Furthermore, Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol will hold a discussion session with financial attachés on innovation cases on February 13 at the Government Complex-Seoul. The discussion session has been organized to provide an opportunity for financial attachés from each country to share innovation cases being pursued at their respective posts and to explore policy implications through open discussions. In particular, the session will be broadcast live on KTV, and innovation cases observed on the ground, as well as the discussions themselves, will be made available to the public.   Please refer to the attached files.