In February, industrial production, facility investment, and construction investment increased, while retail sales remained flat. In March, the number of employed persons rose, and consumer prices rose at a faster pace.

In February, production in the industrial sector (up 5.4% m-o-m and down 2.2% y-o-y) , construction sector (up 19.5% m-o-m and up 1.2% y-o-y), and services sector (up 0.5% m-o-m and up 2.1% y-o-y) rose, leading
to an increase in total industrial production (up 2.5% m-o-m and up 0.5% y-o-y).

In February, the cyclical indicator of the coincident composite index went up by 0.8 points and the cyclical indicator of the leading composite index increased by 0.6 points.

In February, facility investment moved up (up 13.5% m-o-m and up 5.3% y-o-y) while retail sales remained unchanged (0.0% m-o-m and up 4.7%).

In March, the Consumer Sentiment Index (CSI) went down by 5.1 points month-on-month to 107.0. The Composite Business Sentiment Index (CBSI) decreased by 0.1 point to 94.1 and the CBSI outlook for April
fell by 4.5 points to 93.1.

In March, exports climbed by 49.2 percent year-on-year, supported by expanded exports of semiconductors, computers, and wireless communication devices. The daily average exports rose by 42.7 percent compared to the same month of last year.

In March, the number of employed persons grew by 206,000 year-on-year and the unemployment rate fell by 0.1 percent point to 3.0 percent.

In March, the Consumer Price Index (CPI) climbed by 2.2 percent year-on-year, up from 2.0 percent in February. The CPI excluding food and energy rose by 2.2 percent, and the index excluding agricultural products and petroleum and the index for living necessities increased by 2.3 percent, respecitvely.

In March, both housing prices (up 0.15% m-o-m) and Jeonse (lump-sum deposits with no monthly payments) prices (up 0.28% m-o-m) rose.

In March, Korean equity prices declined, yields for Korean Treasury Bond rose, and the Korean Won weakened against the dollar.

Recently, the Korean economy has faced increased downside risks due to heightened geopolitical risks stemming from the Middle East conflict.

Exports, led by semiconductors, have remained robust, and domestic demand, including consumption, has continued to improve. However, the Middle East conflict has weighed on consumer and business sentiment, raising concerns about higher inflation driven by rising global oil prices and increasing burdens on households.

Globally, financial markets and energy prices have become more volatile amid ongoing geopolitical tensions and a worsening trade environment driven by tariff measures in major economies, heightening risks of a slowdown in trade and growth.

To minimize the impact of the Middle East conflict, the government will maintain an emergency economic response framework, closely monitor developments and sector-specific impacts, and swiftly implement the supplementary budget while actively addressing difficulties faced by businesses on the ground.

■ 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

■ Economic News Briefing
　　1. Korea’s GDP Increased by 1.7 % in Q1 2026 (Advance Estimate)
　　2. Deputy Prime Minister Hosts Korea Economic Investor Relations Session in New York
　　3. Korea’s OFDI Posts $71.88 Billion in 2025, Up 8.7% Y-o-Y
　　4. Korea’s FDI Rose to $6.4 Billion in Q1 2026