FX.co ★ South Korea’s Industrial Recovery Stalls as March Output Nearly Flatlines

South Korea’s industrial production growth slowed sharply in March 2026, signaling a pause in the recent recovery momentum. Month-over-month output eased to just 0.3%, according to data updated on 29 April 2026, down from a robust 5.3% expansion recorded in February 2026.

The figures, measured on a month-over-month basis, show that while production is still edging higher, the pace of improvement has cooled significantly compared with the previous month’s surge. February’s 5.3% gain reflected a strong rebound from earlier weakness, whereas March’s 0.3% reading suggests that industrial activity is stabilizing rather than continuing at the prior rapid clip.

The latest reading underscores a more cautious outlook for South Korea’s industrial sector heading into the second quarter, with markets likely to watch upcoming data closely for signs of whether March’s moderation marks a temporary breather or the start of a more prolonged slowdown in manufacturing momentum.