SEOUL, Mar 04 (AJP) - South Korea’s factory output turned negative for the first time in three months in January as semiconductor production slowed, underscoring the outsized weight of the chip sector in the Korean economy, government data showed Wednesday.
Mining and manufacturing output declined 1.3 percent from the previous month in January — the first contraction since October — according to data from Statistics Korea.
The setback was driven largely by the semiconductor sector. Chip output fell 4.4 percent from the previous month and 5.2 percent from a year earlier.
However, movement in facility investment suggests the downturn may be temporary.
Facility investment in January jumped 6.8 percent from the previous month, led by a 41.1 percent surge in semiconductor manufacturing equipment. Investment in automobiles also rose 16 percent, driven by large-scale replacement of freight and corporate vehicles at the start of the year.
Meanwhile, the construction sector swung into decline as the base effect faded. Construction investment, which had surged 12.1 percent in the previous month, plunged 11.3 percent in January, erasing the earlier gain.
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