According to a private sector survey released on Friday, South Korea's factory activity resumed expansion in December, ending two months of continuous contraction. As export demand rebounded, manufacturer sentiment was the most optimistic in three and a half years. According to data released by S&P Global, South Korea's manufacturing purchasing managers' index for December, the fourth largest economy in Asia, was 50.1, slightly above the boom and dry line of 50. The previous two months were 49.4. “Manufacturers say new product launches and improved external demand are driving up sales,” said Usamah Bhatti, an economist at S&P Global Markets Finance Intelligence. “Exports are a significant highlight.” South Korea's economy grew the fastest in the last four years in the third quarter, driven by a strong rebound in exports and consumption. According to itemized data, new orders in December increased for the first time in three months, and was the biggest increase since November 2024, and export orders also rebounded. Output continued to decline for the third consecutive month, but the decline was narrower than the previous month. Other short-term indicators also showed an improvement in demand. The increase in investment procurement was the biggest since August 2024, and the decline in finished product inventory was the biggest since May 2025. The survey showed that, boosted by business expansion and expectations for new product launches, companies' optimism about the coming year rose to the highest level since May 2022, particularly in the automotive and semiconductor industries. In terms of inflation, due to the weakening exchange rate, the increase in input prices was the biggest since July 2022, causing output inflation to rebound to a nine-month high after falling back in the previous month.

According to a private sector survey released on Friday, South Korea's factory activity resumed expansion in December, ending two months of continuous contraction. As export demand rebounded, manufacturer sentiment was the most optimistic in three and a half years. According to data released by S&P Global, South Korea's manufacturing purchasing managers' index for December, the fourth largest economy in Asia, was 50.1, slightly above the boom and dry line of 50. The previous two months were 49.4. “Manufacturers say new product launches and improved external demand are driving up sales,” said Usamah Bhatti, an economist at S&P Global Markets Finance Intelligence. “Exports are a significant highlight.” South Korea's economy grew the fastest in the last four years in the third quarter, driven by a strong rebound in exports and consumption. According to itemized data, new orders in December increased for the first time in three months, and was the biggest increase since November 2024, and export orders also rebounded. Output continued to decline for the third consecutive month, but the decline was narrower than the previous month. Other short-term indicators also showed an improvement in demand. The increase in investment procurement was the biggest since August 2024, and the decline in finished product inventory was the biggest since May 2025. The survey showed that, boosted by business expansion and expectations for new product launches, companies' optimism about the coming year rose to the highest level since May 2022, particularly in the automotive and semiconductor industries. In terms of inflation, due to the weakening exchange rate, the increase in input prices was the biggest since July 2022, causing output inflation to rebound to a nine-month high after falling back in the previous month.