Economic Bulletin, September 2025

Current Economic Trends

Overview

In June, industrial production, services production, retail sales, and construction investment increased, while facilities investment declined. In July, the number of employed persons increased and consumer price rose at a slower pace.

In June, total production rose (up 1.2% m-o-m and up 0.8% y-o-y), as industrial production (up 1.6% m-o-m and up 1.6% y-o-y), services production (up 0.5% m-o-m and up 1.8% y-o-y), and construction sectors (up 6.7% m-o-m and down 12.3% y-o-y) increased.

In June, retail sales increased (up 0.5% m-o-m and up 0.1% y-o-y), and facilities investment fell (down 3.7% m-o-m and up 2.1% y-o-y).

In July, exports increased by 5.9 percent from a year ago driven by robust semiconductor industry performance, and average daily exports increased by 5.9 percent compared to the previous year.

In July, the Consumer Sentiment Index (CSI) rose by 2.1 points month-on-month to 110.8. The Composite Business Sentiment Index (CBSI) decreased by 0.2 points to 90.0 in July, and the CBSI outlook for August declined by 1.0 points to 88.4

In June, the cyclical indicator of the coincident composite index fell by 0.1 point and the cyclical indicator of the leading composite index rose by 0.2 points.

In July, the number of employed persons grew by 171,000 jobs compared to the previous year and the unemployment rate stood at 2.4 percent, down by 0.1 percent point from a year ago.

In July, the Consumer Price Index (CPI) climbed by 2.1 percent year-on-year, driven by a slowdown in processed food price increases and a turn to lower petroleum product prices. The index when excluding food and energy prices increased by 2.0 percent.

In July, Korean equity prices went up, yields for Korean Treasury Bond fell, and the Korean Won weakened against the dollar.

In July, housing prices rose (up 0.12% m-o-m), and Jeonse (lump-sum deposits with no monthly payments) prices also rose (0.04% m-o-m).

Recently, the Korean economy has faced challenges such as delayed recovery in construction investment, employment difficulties concentrated in vulnerable sectors, and concerns over export slowdowns due to U.S. tariff measures. Nonetheless, positive signs for economic recovery are emerging, including a shift to rising consumption supported by policy measures.

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.

Against this backdrop, the government plans to concentrate its efforts on the swift execution of the supplementary budget and ensure that the livelihood recovery consumption coupons serve as a catalyst for boosting consumption and the local economy. At the same time, it also plans to go all out to address trade-related risks, including support for domestic companies affected by U.S. tariff measures.