In May, industrial production, services production, facilities investment, and construction investment declined, while retail sales remained unchanged. In June, the number of employed persons increased and consumer prices rose at a faster pace.

In May, total production fell (down 1.1% m-o-m and down 0.8% y-o-y), as industrial production (down 2.9% m-o-m and up 0.2% y-o-y), services production (down 0.1% m-o-m and up 1.0% y-o-y), and construction (down 3.9% m-o-m and down 20.8% y-o-y) dropped.

In May, retail sales remained unchanged (0.0% m-o-m and down 0.2% y-o-y) , and both facilities investment (down 4.7% m-o-m and up 7.5% y-o-y) and construction investment (down 3.9% m-o-m and down 20.8% y-o-y) fell.

In June, exports increased by 4.3 percent from a year ago and average daily exports increased by 6.8 percent compared to the previous year.

In June, the Consumer Sentiment Index (CSI) rose by 6.9 points month-on-month to 108.7. The Composite Business Sentiment Index (CBSI) decreased by 0.5 points to 90.2 in June, and the CBSI outlook for July declined by 0.1 points to 89.4.

In May, the cyclical indicator of the coincident composite index and the cyclical indicator of the leading composite index decreased by 0.4 points and 0.1 point, respectively.

In June, the number of employed persons grew by 183,000 jobs compared to the previous year and the unemployment rate fell by 0.1 percent point from a year ago.

In June, the Consumer Price Index (CPI) climbed by 2.2 percent year-on-year, driven by a higher petroleum product prices and a wider increase in processed food prices. The index when excluding food and energy prices increased by 2.0 percent.

In June, Korean equity prices rose, yields for Korean Treasury Bond rose, and the Korean Won strengthened against the dollar.

In June, housing prices rose (up 0.14% m-o-m), while Jeonse (lump-sum deposits with no monthly payments) prices also rose (0.03% m-o-m).

Recently, the Korean economy has continued to face downward pressure, with delayed recovery in domestic demand - particularly in consumption and construction investment - and persistent employment challenges in vulnerable sectors. In addition, concerns over a slowdown in exports has grown amid worsening external conditions caused by U.S. tariff measures. However, some positive signs have emerged such as improving consumer sentiment.

The global economy is facing sustained volatility in global financial markets and concerns over slower trade and growth, primarily due to the worsening trade conditions driven by tariff measures imposed by
major economies.

The government will make every effort to swiftly implement the 31.8 trillion won supplementary budget aimed at revitalizing the economy and improving people’s livelihoods. It will also mobilize all available resources to ensure that the People’s Livelihood Recovery Consumption Coupons scheduled to be distributed on July 21 serves as a catalyst for boosting domestic demand, including household consumption and regional economies. At the same time, the government will fully commit to addressing trade-related risks, including providing support for Korean companies affected by U.S. tariff.

■ 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 Grew by 0.6% in Q2 2025 (Advance Estimate)
　　2. The Extension of FX Market Trading Hours: Progress Over the Past Year and Additional
　　3. Inbound FDI posts US $13.1 billion in the first half of 2025