Industrial production up 2.6% in Q1 on chips, machinery: data

The construction site of the Yongin semiconductor cluster in Yongin, just south of Seoul, Jan. 20 / Yonhap

Korea's industrial output expanded 2.6 percent from a year earlier in the first quarter of 2026, driven mainly by semiconductors, machinery and energy-related businesses, data showed Wednesday.

Output in the semiconductor and electronics sector advanced 9 percent from a year earlier in the January-March period, while production in the machinery industry rose 13.2 percent, according to regional economic data compiled by the Ministry of Data and Statistics.

By region, industrial production in North Chungcheong Province expanded 28.4 percent over the period, followed by the southeastern port city of Ulsan with 5.5 percent and Daegu, about 240 kilometers south of Seoul, with 5 percent.

Industrial production in North Jeolla Province, on the other hand, fell 5.8 percent, while output in Incheon, west of Seoul, declined 5.4 percent due to sluggish automobile production.

Service output rose 4 percent from a year earlier nationwide in the first quarter, supported by the finance and insurance sector.

By region, Seoul and Daejeon posted growth of 8.7 percent and 5.3 percent, respectively, while output on the southern resort island of Jeju slipped 1.7 percent.

Retail sales in Incheon and Jeju increased 6.1 percent and 6 percent, respectively, driven by strong duty-free sales.

Exports from Gyeonggi Province and South Chungcheong Province rose $28.4 billion and $20.48 billion, respectively, in the first quarter from the previous year, supported by semiconductors, the latest findings showed.

Exports from Gangwon Province and South Gyeongsang Province, on the other hand, each declined by $30 million due to weak shipments of electronics and chemical products.