Seoul: South Korea's industrial output experienced a decline in October compared to the previous month, as government data revealed on Friday. This downturn was primarily attributed to a base effect in semiconductor production, despite the industry's ongoing upcycle.

According to Yonhap News Agency, the Ministry of Data and Statistics reported that industrial production decreased by 2.5 percent from the previous month in October. This marks the steepest on-month decline in five years and eight months. The mining and manufacturing sector, a key component of the nation's economy, saw a 4 percent reduction in output.

Semiconductor production notably fell by 26.5 percent, representing the most significant on-month drop since October 1982 when it declined by 33.3 percent. The ministry explained that the decline was largely influenced by a strong base effect, as chip production had surged by approximately 20 percent on-month in September. This occurred despite the continued global rise in semiconductor demand, fueled by the artificial intelligence boom.

Lee Doo-won, a ministry official, stated, "Amid booming semiconductor production, the base effect appears to have played an exceptionally large role."

Retail sales, an indicator of private spending, rose by 3.5 percent on-month, bouncing back after two consecutive months of decline. Sales of semidurable goods, such as apparel, increased by 5.1 percent, while nondurable goods, including cosmetics, saw a 7 percent rise. Conversely, sales of durable goods, like home appliances, dropped by 4.9 percent.

Facility investment experienced a 14.1 percent decrease in October, reversing the rebound observed in the previous month, primarily due to weaker investment in machinery and transportation equipment.