Strong performance in the semiconductor and automotive sectors has led to an increase in overall manufacturing output in the second quarter, particularly in Chungbuk and Gwangju. Meanwhile, service sector production grew in 16 regions, excluding Jeju, although the employment rate showed a decline compared to the previous year.
According to the National Data Agency's report on regional economic trends for the second quarter of 2026, national manufacturing output (2020=100) reached 117.6, marking a 2.0% increase from the same period last year. Although the growth rate decreased by 0.6 percentage points from the previous quarter, it has maintained a 2% increase for two consecutive quarters.
Chungbuk (27.8%), Gwangju (9.1%), and Daegu (5.7%) were among the eight regions that contributed significantly to the overall figures. In contrast, Jeonnam (-9.2%), Seoul (-5.7%), and Daejeon (-5.3%) experienced declines in manufacturing output compared to a year ago. A representative from the agency noted, "The production of semiconductors, electronic components, and medical and precision optics has positively impacted overall manufacturing growth, while Jeonnam and Seoul saw decreases in chemical products and clothing and fur production."
Service sector production (125.0) increased by 4.5% year-on-year, with all regions except Jeju showing growth. Seoul recorded the highest increase at 7.5%, driven by growth in finance and insurance (21.6%), wholesale and retail (3.9%), and professional, scientific, and technical services (6.4%).
National retail sales (104.4) rose by 2.4% compared to the previous year, primarily due to increases in non-store retail and department stores. Notable growth was seen in Seoul (3.8%), Daegu (3.5%), and Busan (3.4%), while eight regions, including Daejeon (-5.1%), Gyeongnam (-2.7%), and Jeonbuk (-2.4%), reported declines in retail sales.
Due to ongoing high oil prices influenced by the Middle East conflict, consumer prices (119.8) increased by 3.0% compared to the second quarter of last year. All regions experienced price increases, with the highest rises recorded in Gyeongbuk, Gyeongnam, and Jeonbuk, each up by 3.4%.
Exports, bolstered by strong semiconductor sales, reached $275.51 billion, an increase of $10.064 billion compared to the same period last year. All regions except Gyeongnam reported growth in exports.
Particularly, Gyeonggi ($50.75 billion), Chungnam ($34.49 billion), and Ulsan ($3.95 billion) saw increases in exports of memory semiconductors and diesel fuel, driving overall export growth. Gyeongnam's exports decreased by $520 million year-on-year, attributed to declines in other heavy industrial products and general machinery.
The construction sector continued its upward trend for the second consecutive quarter, focusing on factories, warehouses, and office buildings. In the second quarter, construction orders totaled 1,084.7 trillion won, an increase of 10.8 trillion won from the previous year. Gyeonggi (7.9 trillion won), Seoul (3.5 trillion won), and Chungbuk (1.6 trillion won) saw improvements in factory production and exports, contributing to overall positive figures.
Despite increases in production and exports, the employment rate did not rise. The national employment rate stands at 63.2%, down 0.3 percentage points from the same period last year. Nine regions, including Gyeonggi (-1.1 percentage points), Gyeongbuk (-1.1 percentage points), and Chungbuk (-0.6 percentage points), reported declines in employment rates compared to the previous year.
A representative from the agency stated, "The decrease in employment rates among those in their 20s and those aged 70 and older appears to have contributed to the overall decline in the employment rate."
* This article has been translated by AI.
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