Key facts
- South Korea's industrial output fell 0.3% in May.
- Semiconductor production saw a 10% decrease in May.
- Overseas direct investment by South Korean businesses rose 36% to $21.74 billion in Q1 2026.
- The financial and insurance sector led overseas investment growth with a 63% increase.
- Investment in the United States doubled to $10.15 billion in Q1.
South Korea's industrial output experienced a slight decline of 0.3% in May, primarily attributed to a significant 10% drop in semiconductor production. This decrease in manufacturing output was partially offset by a 1.3% rise in the service sector and a 2.7% increase in vehicle production.
In contrast, South Korea's overseas direct investment saw a substantial surge of 36% in the first quarter of 2026 compared to the previous year, reaching a total of $21.74 billion. This growth has been sustained since the third quarter of 2025.
The financial and insurance sector was the main driver of this outbound investment, with a 63% increase to $13.38 billion, attributed to businesses diversifying global portfolios amidst a strong stock market. The information and communication sector also expanded more than threefold, while manufacturing investment decreased by 5.7%.
Key destinations for this investment included the United States, which doubled to $10.15 billion, Luxembourg, up 97.9% to $2.08 billion, and Singapore, which more than doubled to $1.05 billion.