In December 2025, industrial production, services production, retail sales, and construction investment increased, while facility investment declined. In January 2026, the increase in the number of employed persons moderated, and consumer prices rose at a slower pace.
In December, production in the industrial sector (up 1.5% m-o-m and up 1.8% y-o-y), construction sector (up 12.1% m-o-m and down 4.2% y-o-y) and services sector (up 1.1% m-o-m and up 3.7% y-o-y) rose, leading to an increase in total industrial production (up 1.59% m-o-m and up 1.8% y-o-y).
In December, the cyclical indicator of the coincident composite index moved down by 0.2 points, while the cyclical indicator of the leading composite index moved up by 0.6 points.
In December, retail sales went up (up 0.9% m-o-m and up 1.2% y-o-y), while facility investment went down (down 3.6% m-o-m and down 10.3% y-o-y).
In January, the Consumer Sentiment Index (CSI) went up by 1.0 point month-on-month to 110.8. The Composite Business Sentiment Index (CBSI) decreased by 0.2 points to 94.0 in January, and the CBSI outlook for February rose by 1.0 point to 91.0.
In January, exports climbed by 33.9 percent year-on-year, supported by strong semiconductor performance. Average daily exports rose by 14.0 percent compared to the same month of the previous year.
In January, the number of employed persons grew by 108,000 compared to the same month last year, and the unemployment rate rose by 0.4 percentage points to 4.1 percent.
In January, the Consumer Price Index (CPI) climbed by 2.0 percent year-on-year, as the pace of increase in agricultural, livestock and fisheries product prices moderated. The index excluding food and energy prices also grew by 2.0 percent from a year ago.
In January, housing prices (up 0.28% m-o-m) and jeonse (lump-sum deposits with no monthly payments) prices (up 0.27% m-o-m) both increased.
In January, Korean equity prices went up, Korean Treasury bond yields rose, and the Korean won weakened against the U.S. 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. Indicators that had recorded strong gains in the third quarter temporarily adjusted in October due to base effects, but resumed a recovery trend from November onward.
However, employment difficulties in vulnerable sectors persist, with uncertainties remaining over the pace of recovery in construction investment and the impact of U.S. tariff measures.
The global economy continues to face volatility in financial markets and energy prices, along with concerns over slowing trade and growth. These concerns stem from a worsening trade environment caused by tariff measures imposed by major economies and heightened geopolitical uncertainties.
To broaden the momentum of economic recovery going forward, the government plans to continue implementing proactive macroeconomic policies and pursue targeted measures to revitalize consumption, investment, and exports. It will also move forward expeditiously with the 2026 Economic Growth Strategy to boost potential growth, promote balanced development, address economic polarization, and strengthen the foundations for a major economic leap.
