Last year's boom in the semiconductor, auto and shipbuilding industries continued, widening the economic gap between regions centered on those sectors and those that were not. While North Chungcheong, which benefited the most from semiconductors, saw broad improvements in production, consumption, employment and population, many areas exposed to a construction slump could not avoid negative growth.
According to the Ministry of Data and Statistics (MODS) released on the 20th in the Regional economic trends for the fourth quarter and the year 2025, nationwide mining and manufacturing output rose 1.6% last year, but regional disparities were stark. Only five provinces and metropolitan cities saw increases in output: North Chungcheong (12.6%), Gwangju (9.4%), Gyeonggi (7.9%), Ulsan (2.8%) and North Gyeongsang (1.8%).
In contrast, 12 provinces and metropolitan cities declined, including Seoul (-7.7%), Sejong (-5.5%), Busan (-4.1%), South Jeolla (-3.1%), Daejeon (-1.7%), North Jeolla and Jeju (-1.6%), South Gyeongsang (-1.2%), Incheon (-1.0%), Gangwon (-0.9%), South Chungcheong (-0.7%) and Daegu (-0.5%). Regions with a high share of semiconductors and electronic components and transport equipment recorded gains, while those with a large share of construction-related industries mostly struggled, sharply dividing regional economies by the composition of their key industries.
North Chungcheong, which received the most concentrated semiconductor boost, saw exports surge 26.8% from a year earlier, far above the national average of 3.6%. Its employment rate rose 1.3 percentage points, and net in-migration reached 10,789, ranking third nationwide after Gyeonggi (32,970) and Incheon (32,264), with key indicators improving across the board.
Gwangju and Ulsan, where transport equipment such as autos and ships account for a high share, also showed relatively solid trends. In Gwangju, retail sales rose 0.8%, exports increased 12.6%, and the employment rate climbed 0.2 percentage points. In Ulsan, retail sales grew 3.8% and the employment rate rose 0.1 percentage points.
Meanwhile, the fallout from the construction slump spread nationwide regardless of region. Output of nonmetallic minerals, including cement and glass, fell in all 17 provinces and metropolitan cities, and primary metals such as rebar and steel plate declined in 14. A Ministry of Data and Statistics (MODS) official said, "The construction industry has been weak nationwide, making regional disparities by industrial structure more pronounced."