Seoul: South Korea's industrial output experienced an increase in March, buoyed by robust semiconductor production, despite ongoing challenges in other sectors, as per recent data. Industrial production climbed 0.9 percent last month, maintaining its upward trajectory for the second consecutive month following a period of decline beginning in September, with a brief improvement in December, according to figures released by Statistics Korea.

According to Yonhap News Agency, retail sales, a key indicator of private consumption, saw a slight decline of 0.3 percent from the previous month in March. Additionally, facility investment experienced a 0.9 percent decrease, following a significant recovery in February.

The uptick in industrial output was primarily fueled by growth in the mining and manufacturing sectors, which recorded a 2.9 percent increase from February. Notably, semiconductor production experienced a remarkable 13.3 percent rise in March, the largest monthly increase in 19 months since August 2023, when it grew by 13.6 percent. Pharmaceutical production also saw a notable rise of 11.8 percent, and the output of electronic components increased by 7.8 percent.

On a year-over-year basis, overall industrial production rose by 1.3 percent in March. Retail sales exhibited a mixed performance, with sales of durable goods and semidurable goods, such as clothing, increasing by 2.8 percent and 2.7 percent on-month, respectively. In contrast, sales of home appliances experienced a sharp decline of 8.6 percent. Compared to the same month last year, retail sales advanced by 1.5 percent.

The construction sector faced challenges, with output decreasing by 2.7 percent on-month after a brief recovery in February. Construction orders continued their downward trend, declining by 8.7 percent from the previous month and extending their losing streak to 11 consecutive months.

"Retail sales and facility investment showed some weakness, which appears to be a correction following February's increase," stated Lee Doo-won, an official from the agency. He acknowledged the strong performance in the semiconductor sector but urged caution due to ongoing uncertainties related to recent U.S. tariff measures. "As far as production volume is concerned, there does not appear to be any immediate impact from the tariffs," he added.