Seoul: South Korea's industrial output declined in April compared to the previous month, as reported on Friday. Retail sales and facility investment also decreased, reflecting economic uncertainties arising from tensions in the Middle East.

According to Yonhap News Agency, industrial production experienced a 0.6 percent decline from March, based on data from the Ministry of Data and Statistics. The mining and manufacturing sector, crucial to the national economy, saw a reduction of 0.7 percent, largely due to a 10 percent dip in the automobile industry's output. However, production in the chip sector increased by 3.1 percent.

The oil refining industry experienced a significant 19.4 percent drop, attributed to supply disruptions linked to the U.S.-Iran conflict, marking the steepest decline since a 22.1 percent fall in 1988. The service sector's output also decreased by 1 percent in April due to poor performances in the finance and insurance sectors, which decreased by 7.7 percent.

The wholesale and retail segment saw a 1.5 percent decline, although the information and telecommunications sector increased by 4.3 percent. Lee Doo-won, a senior official at the data ministry, noted that the figures were influenced by previous gains and the ongoing Middle East tensions. He also mentioned that the upward trend has persisted compared to the previous year.

A separate report from the finance ministry indicated that the declines were further affected by disruptions in energy resource supplies. Retail sales, an indicator of private spending, fell by 3.6 percent during this period. Sales of semidurable goods remained stable, while durable goods sales, such as computers, decreased by 11.1 percent. Sales of nondurable goods like gasoline fell by 1.1 percent.

Facility investment dropped by 3.6 percent in April, mainly due to reduced investment in the aviation sector. However, investment in the machinery segment, including products for chipmakers, increased by 0.5 percent.

The finance ministry expressed optimism that the key figures would rebound in May, as consumer sentiment improved and business sentiment reached a 43-month high. Despite the ongoing uncertainties related to the Middle East conflict and rising oil prices, the government is committed to minimizing the economic impact by stabilizing prices, maintaining supply chains, creating jobs, and supporting domestic consumption.