Seoul: South Korea's industrial output rebounded in June from a month earlier, snapping two months of decline led by the automobile and semiconductor industries, data showed Friday, with retail sales and facility investment also gaining ground. According to Yonhap News Agency, industrial production added 2.3 percent last month from May, based on data from the Ministry of Data and Statistics. This marked the sharpest growth since a 2.9 percent rise posted in June 2020, and it was the first time since March that the three economic indicators showed simultaneous growth.

Output in the mining and manufacturing sector, a key pillar of the economy, surged 6.4 percent, driven by the automobile and chip industries. Specifically, output from the automobile and semiconductor sectors rose 15.4 percent and 4.5 percent, respectively. Notably, the output in the crucial chip industry had seen a 10 percent decline on a month-to-month basis in May. The ministry attributed the strong gains in these sectors to hybrid cars and memory chips. "Supply disruptions of auto parts caused by a fire at an engine component company in March have been ironed out. Rising demand at home and abroad also led to a significant increase in automobile production," stated Lee Doo-won, a senior ministry official.

Despite these gains, the report indicated a 10.4 percent decline in output from the electronic components sector. However, output in the service sector rose 0.7 percent during the same period, driven by the finance and insurance sector, although the information and communication segment saw a 3 percent decline.

Retail sales, a measure of private spending, increased by 2.7 percent, with durable goods such as cars leading the way. The report showed sales of semidurable goods, such as clothes, fell 1.7 percent, while sales of durable goods, including cars and computers, climbed 12.6 percent. Non-durable goods, including food, saw a 0.2 percent increase. The growth in durable goods sales was the highest in nearly 17 years since the 14 percent spike in September 2009. The ministry noted that car sales jumped 21.8 percent, marking the steepest rise in six years and three months. Promotional events by Samsung Electronics Co. and LG Electronics Inc. also contributed to the overall increase.

Facility investment also rose significantly, increasing by 5.8 percent from the previous month. The latest data revealed investment in machinery and transportation equipment, including cars, rose by 6.9 percent and 3.4 percent, respectively.