Last Year Annual Total Industrial Production Down 0.8% YoY... First Negative Since Statistics Compilation (Supplement)

Statistics Korea Announces December 2020 and Annual Industrial Activity Trends

[Asia Economy Reporters Son Seon-hee and Moon Chae-seok] Last year, the total industrial production index fell into negative territory for the first time since statistics began in 2000. This was due to the service sector dropping into negative territory for the first time, impacted by the aftermath of the novel coronavirus disease (COVID-19).

On the 29th, Statistics Korea released the 'December 2020 and Annual Industrial Activity Trends' report containing these details.

The total industrial production index decreased by 0.8% compared to the previous year. The decline in transportation and warehousing, accommodation, and food services led to the service sector index recording a negative -2.0% for the first time.

The retail sales index also fell by 0.2% year-on-year due to the impact of COVID-19, marking the first negative figure in 17 years since 2003 (-3.1%).

This was largely due to a contraction in sales of semi-durable goods such as clothing (-12.2%) and non-durable goods such as cosmetics (-0.4%). However, durable goods like passenger cars increased by 10.9%.

Facility investment rose by 6% compared to the previous year, marking an increase after three years.

This was because investment in machinery, including special industrial machinery, increased by 8.6%. Construction performance declined by 5.2% in building construction, resulting in a 2.3% decrease compared to the previous year.

In December last year, total industrial production increased by 0.5% despite a 27.3% decrease in accommodation and food services, driven by an 11.6% increase in semiconductor production. Retail sales and facility investment each rose by 0.2% and 0.9%, respectively.

This content was produced with the assistance of AI translation services.