Economic Bulletin, November 2025

Current Economic Trends

Overview

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

In August, total production remained unchanged (0.0% m-o-m and down 0.3% y-o-y), as growth in industrial production (up 2.4% m-o-m and up 0.9% y-o-y) offset declines in construction sector (down 6.1% m-o-m and down 17.9% y-o-y) and services sector (down 0.7% m-o-m and up 1.0% y-o-y).

In August, retail sales (down 2.4% m-o-m and down 0.5% y-o-y) and facilities investment (down 1.1% m-o-m and down 0.4% y-o-y) decreased.

In September, exports increased by 12.6 percent from a year ago partly due to an increase in the number of working days. Average daily exports dropped by 6.1 percent compared to the same moth of previous year.

In September, the Consumer Sentiment Index (CSI) fell by 1.3 points month-on-month to 110.1. The Composite Business Sentiment Index (CBSI) increased by 0.6 points to 91.6 in September, and the CBSI outlook for October rose by 3.3 points to 88.5.

In August, the cyclical indicator of the coincident composite index rose by 0.2 point and the cyclical indicator of the leading composite index climbed by 0.5 points.

In September, the number of employed persons grew by 312,000 jobs compared to the previous year and the unemployment rate stood unchanged at 2.1 percent from the previous year.

In September, the Consumer Price Index (CPI) climbed by 2.1 percent year-on-year, driven by the rebound in petroleum product prices. The index when excluding food and energy prices grew by 2.0 percent.

In September, Korean equity prices climbed, yields for Korean Treasury Bond rose, and the Korean Won weakened against the dollar.

In September, housing prices rose (up 0.09% m-o-m), and Jeonse (lump-sum deposits with no monthly payments) prices also rose (0.10% m-o-m).

Although the Korean economy continues to face concerns over sluggish recovery in construction investment, employment difficulties in vulnerable sectors, and potential export slowdown due to U.S. tariff measures, key indicators such as production and consumption have shown an overall improvement trend amid monthly fluctuations, suggesting a recovery from the sluggish performance in the first half of the year.

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.

While the government is making all-out efforts to respond to trade risks, including support measures for domestic firms affected by U.S. tariff actions, it is also mobilizing all available policy resources to revitalize domestic demand and local economies through swift execution of the supplementary budget, livelihood recovery consumption coupons, and large-scale discount events.