South Korea’s industrial production declined in January, highlighting growing economic uncertainty fueled by U.S. tariffs and global trade tensions. According to government data released Tuesday, factory output fell 2.3% month-on-month, reversing December’s 3.9% gain. The decline was smaller than the 3.1% drop predicted in a Reuters poll.
Electronics and semiconductor-related industries were hit hard. Production of electronic components, including display panels, plunged 8.1%, while semiconductor assembly machinery dropped 7.7%. The all-industry production index also fell 2.7%, with services sector output slipping 0.9%.
The finance ministry attributed the weak performance to external uncertainties, fewer working days, and an unfavorable base effect. Meanwhile, facility investment plummeted 14.2% due to reduced imports of semiconductor machinery and transport equipment. Retail sales also declined by 0.6%.
Adding to concerns, U.S. President Donald Trump confirmed that 25% tariffs on Canada and Mexico would take effect Tuesday, with reciprocal tariffs beginning April 2. Although the U.S.-Korea Free Trade Agreement (FTA) exempts many goods, Trump’s global steel and aluminum tariffs could impact South Korea’s exports.
In February, South Korea’s exports struggled, with semiconductor shipments ending a 15-month growth streak due to falling memory-chip prices.
As a key global exporter, South Korea faces mounting pressure from shifting trade policies and weakening demand, raising concerns over future economic stability.


U.S. Stock Futures Edge Higher as Tech Rout Deepens on AI Concerns and Earnings
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election
Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility
Asian Markets Slip as AI Spending Fears Shake Tech, Wall Street Futures Rebound
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient
Thailand Inflation Remains Negative for 10th Straight Month in January
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 



