Last Year Nationwide Service Industry Production Up 4.3%... Seoul Ranks 1st Amid Stock Market Boom

Regional Economic Trends for Q4 and Annual 2021

[Asia Economy Sejong=Reporter Son Seon-hee] Last year, service industry production increased in all cities and provinces nationwide. In particular, Seoul's service industry production was overwhelmingly high due to an increase in stock trading volume last year.

According to the '2021 Q4 and Annual Regional Economic Trends' released by Statistics Korea on the 22nd, nationwide service industry production increased by 4.3% compared to the previous year. In 2020, due to the initial shock of the COVID-19 pandemic, the statistics recorded a negative growth for the first time since data collection began in 2000. This is analyzed as a base effect resulting from a sharper-than-expected economic recovery last year.

In particular, Seoul's annual service industry production increased by 5.9%, the highest growth rate nationwide. A Statistics Korea official explained, "In Seoul, financial transactions such as loans and stocks increased, resulting in a high growth rate of 10.8% in the financial and insurance sector alone." This was followed by Gyeonggi at 4.3% and Busan at 4.1%. Ulsan's service industry production increased by only 2.0%, the lowest nationwide, followed by Gyeongnam at 2.5% and Jeju at 2.6%.

Manufacturing production also showed a nationwide increase of 6.9%, with 16 cities and provinces including Gyeonggi (13.7%) and Chungbuk (12.0%) recording growth compared to the previous year. Gangwon (-0.1%) was the only region to see a decrease.

Consumption (retail sales), which had contracted after the COVID-19 pandemic, showed signs of recovery last year. Nationwide, it increased by 5.5%, with high growth rates in Seoul (6.4%), Busan (6.0%), and Jeju (5.7%). Conversely, consumption decreased in two regions, Ulsan (-1.3%) and Incheon (-1.0%).

Exports (based on customs clearance) increased nationwide by 25.7%, driven by growth in memory semiconductors, other organic and inorganic compounds, and other petroleum products. Daejeon (-1.3%) saw a decrease due to reduced exports of capacitors and batteries, but Jeonnam (57.6%), Jeju (45.8%), and Gangwon (34.8%) experienced increases due to higher exports of steel plates, integrated circuit semiconductors, and heavy chemical products.

The employment rate nationwide was 60.5%, rising by 0.4 percentage points from the previous year due to increased employment rates among people in their 20s and those aged 15-19. Employment rates fell in Gwangju (-0.5 percentage points), Ulsan (-0.4 percentage points), and Seoul (-0.1 percentage points), while they rose in Daegu (1.6 percentage points), Jeonbuk (1.3 percentage points), and Gyeonggi (0.8 percentage points).

Prices rose by 2.5% year-on-year due to increases in fuel prices and services. Prices rose in all cities and provinces nationwide. Seoul (2.1%) had a lower increase than the national average, while Gangwon (2.8%), Chungnam (2.8%), and Gyeongbuk (2.7%) had higher inflation rates than the national average due to the impact of petroleum products, livestock products, and agricultural products.

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