Seoul: South Korea's industrial output rebounded in June, marking the sharpest growth in six years, on the back of strong performances in the automobile and semiconductor industries. This growth snapped a two-month downward trend, with retail sales and facility investment also showing gains.

According to Yonhap News Agency, industrial production increased by 2.3 percent in June compared to May, as reported by the Ministry of Data and Statistics. This marks the most significant growth since a 2.9 percent rise in June 2020 and represents the first time since March that all three economic indicators-industrial output, retail sales, and facility investment-rose simultaneously.

The mining and manufacturing sector, a pivotal part of the economy, saw a robust 6.4 percent increase in output, largely driven by the automobile and chip industries. Specifically, production in the automobile sector surged by 15.4 percent, while the semiconductor sector saw a 4.5 percent rise. This comes after a 10 percent decline in the chip industry in May, with the ministry attributing the gains to hybrid cars and memory chips.

However, the report indicated a 10.4 percent decline in output from the electronic components sector. Meanwhile, the service sector experienced a modest 0.7 percent growth, primarily fueled by the finance and insurance sectors, despite a 3 percent decline in the information and communication segment.

Retail sales, which reflect private spending, increased by 2.7 percent, driven by demand for durable goods like cars. While sales of semidurable goods, such as clothing, decreased by 1.7 percent, durable goods sales, including cars and computers, shot up by 12.6 percent. Non-durable goods, such as food, saw a slight increase of 0.2 percent.

Facility investment rose significantly by 5.8 percent in June, with investments in machinery and transportation equipment, including cars, increasing by 6.9 percent and 3.4 percent, respectively, according to the latest data.