S. Korea's Services Industry Suffers 4.4% Monthly Setback

Korea's services industry output suffered its biggest monthly decrease, dropping 4.4 percent in March, according to data by Statistics Korea.

The loss was mainly attributed to social distancing.

Tourism, lodging, and entertainment businesses took the biggest hits due to the guidance meant to prevent the spread of COVID-19.

The 4.4 percent plunge in March was the second monthly decline in a row following a 3.5 percent decrease in February.

The drop in the services sector caused a 0.3 percent decline in overall industrial output, despite production boosts in manufacturing, construction, energy, and public administration.

On a month-on-month basis, entertainment, leisure, and sports had the steepest drop of 31.2 percent, followed by lodgings and restaurants with 17.7 percent, storage and transport with a drop of 9 percent, education with a 6.9 percent dip, and wholesale and retail with 3.3 percent.

On a yearly basis, the decline was worst in the entertainment, leisure, and sports sector, which was nearly halved with a 45.9 percent drop from 2019. Lodgings and restaurants followed with 32.1 percent, trailed by storage and transport with 16.4 percent.