Seoul: South Korea's industrial output increased by 2.6 percent in the first quarter of 2026 compared to the previous year, primarily driven by gains in the semiconductor, machinery, and energy-related sectors. This data was released on Wednesday.
According to Yonhap News Agency, the semiconductor and electronics sector saw a 9 percent increase in output during the January-March period, while the machinery industry recorded a more substantial rise of 13.2 percent. This information was compiled by the Ministry of Data and Statistics.
Regionally, North Chungcheong Province led the growth with a 28.4 percent increase in industrial production. Ulsan followed with a 5.5 percent increase, and Daegu, located approximately 240 kilometers south of Seoul, saw a 5 percent rise. In contrast, North Jeolla Province experienced a 5.8 percent decline, and Incheon, west of Seoul, saw a 5.4 percent decrease, primarily due to a slump in automobile production.
Service sector output also rose by 4 percent nationwide in the first quarter, bolstered by the finance and insurance industries. In terms of regional performance, Seoul posted an 8.7 percent growth, and Daejeon achieved a 5.3 percent increase. However, Jeju Island saw a slight decline of 1.7 percent.
Retail sales figures revealed a growth of 6.1 percent in Incheon and 6 percent in Jeju, largely driven by robust duty-free sales. Export activities showed that Gyeonggi Province and South Chungcheong Province reported increases of US$28.4 billion and $20.48 billion, respectively, supported by semiconductor exports. Conversely, exports from Gangwon Province and South Gyeongsang Province each dropped by $30 million due to weak shipments of electronics and chemical products.