BOK's monetary stance likely accomodative through 2016

Korea's October industrial output year on year increased 1.5%, which was below consensus expectations of 2.2%. The Industrial Production dropped 1.4% on a seasonally adjusted mom basis, reversing the 2.2% expansion partially in the previous month.

This numbers mainly indicated a large payback from September's front loading of production ahead of Chuseok Holiday and China's Golden week. The utilization ratio also fell to 73.8%, lowest since May of this year.

The IS ration remained close to the 1.30x peak reached during the global financial crisis, driven by semi conductors, in which IS ratio reached 29 months hig in October, might be because of chips being produced.

"All in, we believe the broad trend of weak external demand but stronger domestic services activity remains unchanged. The softness in trade and production is likely to keep the BoK's monetary stance accommodative into 2016", says Barclays in a research note.