FX.co ★ South Korea Manufacturing Sector Returns to Growth

In December 2025, the S&P Global South Korea Manufacturing PMI increased to 50.1, an improvement from the previous month's 49.4. This marks the first expansion in the manufacturing sector in three months and represents the strongest level since September. Notably, new orders have risen for the first time in three months, experiencing the most significant growth since November 2024. For the first time since September, new export orders shifted back into growth territory, propelled by enhanced demand. While output continued to decline, the rate of decrease was less pronounced than in November. Purchasing activity increased for the first time since September and did so at the quickest rate since August 2024. Regarding pricing, input cost inflation surged to its highest point since July 2022, fueled by rising raw material costs and challenging exchange rate conditions. Consequently, output cost inflation climbed to a nine-month high. Business sentiment also improved, reaching its most optimistic level since May 2022, driven by expectations of increased sales aided by the launch of new products.