In May, total industrial production decreased, while retail sales increased. In June, the growth in the number of employed persons rebounded, and consumer price growth accelerated from the previous month.

In May, the total industrial production fell (down 3.0% m-o-m and up 2.3% y-o-y) as a decline in industrial output (down 3.0% m-o-m and down 0.9% y-o-y) more than offset increases in services output (up 1.3% m-o-m and up 4.9% y-o-y) and construction output (up 3.8% m-o-m and down 1.9% y-o-y).

Facilities investment moved down (down 0.1% m-o-m and up 9.7% y-o-y) and retail sales moved up (up 0.1% m-o-m and up 1.7% y-o-y).

The cyclical indicator of the coincident composite index for May fell by 0.3 points and the cyclical indicator of the leading composite index increased by 0.7 points.

In May, facilities investment moved down (down 0.1% m-o-m and up 9.7% y-o-y) and retail sales moved up (up 0.1% and up 1.7%).

In June, the consumer sentiment index (CSI) went up by 0.5 points month-on-month to 106.6. The composite business sentiment index (CBSI) went down by 1.2 points to 97.7 and the CBSI outlook for July dropped by 2.4 points to 95.2.

In June, exports climbed by 70.9 percent year-on-year, supported by expanded exports of semiconductor, computers, and ships. Average daily exports rose by 59.5 percent in June compared to the same month of last year.

In June, the number of employed persons grew by 63,000 from a year earlier, and the unemployment rate remained unchanged at 2.8 percent.

In June, the year-on-year consumer price index (CPI) climbed by 3.2 percent, up from 3.1 percent last month, while the index excluding food and energy rose by 2.5 percent, the index excluding agricultural products and petroleum products rose by 2.4 percent, and the CPI for living necessities increased by 3.4 percent.

In June, stock prices remained flat, Korean Treasury Bond yields increased, and the Korean won weakened against the U.S. dollar.

In June, both housing prices (up 0.33% m-o-m) and Jeonse (lump-sum deposits with no monthly payments) prices (up 0.38% m-o-m) continued to climb.

The Korean economy has recently seen its recovery gain a firmer footing, following a marked acceleration in growth in the first quarter. Exports continued to increase sharply and domestic demand, including consumption, improved after temporarily losing momentum due in part to the impact of the war in the Middle East.

However, cost-of-living pressures persist, including higher inflation and slower employment growth in the wake of the conflict in the Middle East.

Although the global economy continues to grow at a moderate pace, the impact of the Middle East conflict has pushed up inflation in major economies and raised concerns over slower growth, while uncertainty surrounding international financial markets and energy prices remains.

The government plans to make every effort to minimize the impact of the Middle East conflict by ensuring stable supplies of key goods and maintaining price stability. At the same time, it will swiftly implement the Economic Growth Strategy for the Second Half of 2026 to address structural challenges, including a post-conflict strategy for the Middle East, a rebound in potential growth, and measures to address economic polarization.

■ Current Economic Trends
　Overview
　Economic Activity
　1. Gross Domestic Product
　2. Total Production and composite index of business indicators
　3. Private consumption
　4. Facility investment
　5. Construction investment
　6. Exports and imports
　7. Employment
　8. Prices
　9. Housing market

　Financial Markets
　1. Stock market
　2. Bond market
　3. Foreign exchange market
　4. Money market
　5. Official foreign reserves
　6. External debt

　Public Finance
　1. Fiscal balance
　2. National debt

■ Current Economic Trends
　1. Economic Growth Strategy for the Second Half of 2026

■ Economic News Briefing
　1. Korea’s GDP Increased by 0.6 % in Q2 2026 (Advance estimate)
　2. 24-Hour FX Market Launch Marks the Beginning of the Korean Won’s Global Expansion
　3. Korea Successfully Issues Record-Size Euro-Denominated FX Fund Bonds at the Lowest-Ever Spreads
　4. Korea’s OFDI Posts USD 21.74 Billion in Q1 2026
　5. Korea’s FDI Notifications Rose 9.1% to $14.3 Billion in H1 2026