Economic Bulletin, February 2025
Current Economic Trends
Overview
In November 2025, industrial production, services production, facilities investment, and construction investment increased, while retail sales declined. In December 2025, the increase in the number of employed persons moderated, and consumer price rose at a slower pace.
In November, production in the industrial sector (up 0.6% m-o-m and down 1.4% y-o-y), construction sector (up 6.6% m-o-m and down 17.0% y-o-y) and services sector (up 0.7% m-o-m and up 3.0% y-o-y) rose, leading to an increase in total industrial sector (up 0.9% m-o-m and up 0.3% y-o-y).
In November, the cyclical indicator of the coincident composite index moved down by 0.4 points and the cyclical indicator of the leading composite index moved up by 0.3 points.
In November, retail sales decreased (down 3.3% m-o-m and up 0.8% y-o-y), while facilities investment went up (up 1.5% m-o-m and down 0.1% y-o-y).
In December, the Consumer Sentiment Index (CSI) went down by 2.5 points month-on-month to 109.9. The Composite Business Sentiment Index (CBSI) increased by 1.6 points to 93.7 in December, and the CBSI outlook for January 2026 fell by 1.7 points to 89.4.
In December, exports climbed by 13.4 percent year-on-year, supported by strong semiconductor performance. Average daily exports rose by 8.7 percent compared to the same month of previous year.
In December, the number of employed persons grew by 168,000 jobs compared to the same month last year and the unemployment rate rose by 0.3 percent points to 4.1 percent.
In December, the Consumer Price Index (CPI) climbed by 2.3 percent year-on-year, driven by agricultural products and petroleum prices. The index when excluding food and energy prices grew by 2.0 percent from a year ago.
In December, housing prices (up 0.26% m-o-m) and Jeonse (lump-sum deposits with no monthly payments) prices rose (0.28% m-o-m).
In December, Korean equity prices went up, yields for Korean Treasury Bond rose, and the Korean Won strengthened against the dollar.
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.
However, amid heightened month-to-month volatility – as indicators that recorded sharp increases in the third quarter have undergone some adjustment due to base effects and extended holidays – hiring difficulties in vulnerable sectors persist, and uncertainties remain regarding the pace of recovery in construction investment and the impact of U.S. tariff measures.
The global economy continues to face volatility in the global financial markets and concerns over slowing trade and growth, due in part to a deteriorating trade environment following tariff measures by major economies and geopolitical uncertainties.
With an aim to broaden growth momentum going forward, the government plans to continue to pursue proactive macroeconomic policies and efforts to revitalize consumption, investment, and exports, while expeditiously implementing the 2026 Economic Growth Strategy to boost the potential growth, promoting balanced and inclusive growth, overcoming polarization, and strengthening the foundation for a major economic leap forward.
