Thanks to a semiconductor boom, production, consumption, and investment all increased in June from the previous month. Manufacturing production posted the biggest gain in six years. Durable goods consumption also rose by the most in 16 years and 9 months, helped by a Samsung Electronics rebate event that returned 20% of appliance and other purchase amounts in Digital Onnuri gift certificates.
According to the "Industrial activity trends for June 2026" released by the Ministry of Data and Statistics (MODS) on the 30th, last month's index of all-industry production (seasonally adjusted, excluding agriculture, forestry, and fisheries) was 120.1 (2020=100), up 2.3% from the previous month. It was the biggest increase in six years since June 2020. After two straight months of declines in April (-0.5%) and May (-0.4%), it turned higher.
Production increased in both mining and manufacturing and in services. Mining and manufacturing output rose 6.4% from the previous month, and manufacturing within mining and manufacturing grew 6.8%. Both were the largest increases since June 2020. Semiconductor production rose 4.5%, rebounding after a 10% drop in May, and automobiles (15.4%) and machinery and equipment (8.6%) also increased. A Ministry of Data and Statistics (MODS) official said, "Supply, which had been disrupted by a fire at an auto engine parts maker in March, has normalized, and as domestic and overseas demand increased, automobiles posted a sharp rise."
The average operating rate in manufacturing was 74.9%, up 4 percentage points (p) from the previous month, and manufacturing inventories rose 0.1% from the previous month.
Consumption increased 2.7% from the previous month. It was the biggest gain in five months since January (1.8%). Durable goods such as passenger cars and telecommunication devices jumped 12.6%, and nondurable goods such as food and beverages rose 0.2%. A Ministry of Data and Statistics (MODS) official said, "Due to Samsung Electronics' 20% Onnuri gift certificate payout event and LG Electronics' double point accrual, sales of durable goods such as home appliances, telecommunication devices, and computers increased significantly."
Service output also rose 0.7%. While information and communications fell 3%, finance and insurance and transportation and warehousing increased 2.8% and 2%, respectively.
Facility investment increased 5.8% from the previous month. It was the largest rise in four months since February (15%). Machinery, including precision instruments, rose 6.9%, and transport equipment such as automobiles increased 3.4%. Construction completed work decreased 1.3% in civil engineering due to lower work performance, but buildings rose 5.9%, resulting in a 4.1% increase.
Business cycle indicators were also strong. The coincident composite index of cyclical indicators, which reflects current economic conditions, rose 0.9 points from the previous month to 100.3, and the leading composite index of cyclical indicators, which signals future business phases, rose 0.9 points to 105.7.