Korea's factory output rebounds in fastest pace in 6 years Feb largely on chipmaking

SEOUL, March 31 (AJP) -South Korea’s industrial output rebounded in February, driven by the strongest manufacturing growth in nearly six years on robust semiconductor production and the biggest gain in investment in more than a decade, data showed Tuesday.

Mining and manufacturing output rose 5.4 percent from a month earlier, sharply reversing a 2.4 percent drop in January, as chip production surged 28.2 percent, according to the Ministry of Data and Statistics. It marked the strongest increase since output rose 6.6 percent in June 2020.

Domestic demand, however, remained subdued. Retail sales were flat from the previous month, while services output edged up just 0.5 percent, highlighting still-weak private consumption.

Overall industrial output, which includes services, rose 2.5 percent in February, rebounding from a 0.9 percent contraction in January.

Investment was a key pillar of the recovery. Facility investment jumped 13.5 percent on-month, accelerating from a 5.3 percent gain in January and marking the strongest increase since a 14.1 percent rise in November 2014, supported by strong demand in the semiconductor and auto sectors.

Construction investment also rebounded, rising 19.5 percent after falling 7.8 percent the previous month, adding further support to the overall output recovery. 

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