In December last year, Korea's consumption indicators rebounded, and production continued to rise for a second straight month. For the year, for the first time in four years since 2021, production, consumption, and investment all increased from a year earlier, marking a "triple increase."
According to the "Industrial activity trends for December 2025 and the year" released by the Ministry of Data and Statistics (MODS) on the 30th, the all-industry production index (seasonally adjusted, excluding agriculture, forestry and fishing) for December last year was 115.5 (2020=100), up 1.5% from the previous month. All-industry production turned to growth in November (0.9%) after October (-2.6%) and expanded its gain.
Mining and manufacturing production rose 1.7% from the previous month on increases in semiconductors (2.9%) and pharmaceuticals (10.2%). Service output also increased 1.1% on gains in wholesale and retail (4.6%) and professional, scientific and technical services (2.7%).
Retail sales rose 0.9% from the previous month as sales increased for semi-durable goods such as clothing (3.1%) and non-durable goods such as food and beverages (0.9%). However, facility investment fell 3.6% from the previous month as investment declined in transport equipment such as other transport equipment (-16.1%). Construction completed, which shows builders' actual construction performance in value terms, jumped 12.1% as both building and civil engineering increased.
For the full year last year, all-industry production increased 0.5% from a year earlier as output rose in services (1.9%) and mining and manufacturing (1.6%). Mining and manufacturing production increased 1.6% year over year on gains in semiconductors (13.2%) and other transport equipment (23.7%). Service output also rose 1.9% on increases in health and social welfare (4.8%) and wholesale and retail (2.9%).
Retail sales increased 0.5% from a year earlier as sales of durable goods such as passenger cars (4.5%) rose. After falling for three straight years in 2022 (-0.3%), 2023 (-1.3%) and 2024 (-2.1%), they turned to growth.
Facility investment increased 1.7% from a year earlier as investment rose in transport equipment such as automobiles (4.2%) and machinery such as semiconductor manufacturing equipment (0.6%). Construction completed decreased 16.2% year over year as construction performance fell in both building (-17.3%) and civil engineering (-13.0%).
Lee Doo-won, economic trend statistics deliberation officer at the Ministry of Data and Statistics (MODS), said, "In the institutional sector of production, semiconductors increased 13.2%, and other transport equipment rose 23.75% thanks to the shipbuilding boom." Lee added, "On consumption, passenger cars, which had declined due to the electric vehicle chasm in 2024, increased 11.0%, leading the recovery, and on investment, semiconductor manufacturing machinery and the expansion of corporate electric vehicle adoption contributed."
However, the coincident composite index of cyclical indicators, which shows the current economic situation, was 98.5, down 0.2 points from the previous month. The leading composite index of cyclical indicators, which signals the future economic phase, was 103.1, up 0.6 points from the previous month.