The December 2025 edition of Invest KOREA’s KotraExpress highlights a strengthening recovery across South Korea’s key economic sectors, supported by expanding services activity, robust investment trends and improving composite economic indicators. Sector-level developments underscore Korea’s strategic positioning in advanced manufacturing, high-tech industries and next-generation mobility. The services sector continues to serve as the main engine of economic growth. Output increased both on a monthly and annual basis, driven by strong performance in wholesale and retail trade, finance and insurance, and information and communications technology services. The expansion of these sectors reflects resilient domestic demand, accelerating digital transformation and growing demand for mobility-related digital services, including smart logistics, connected platforms and data-driven transportation solutions. Manufacturing activity showed mixed short-term dynamics but remained resilient in high-value segments. While overall mining and manufacturing output declined slightly on a month-on-month basis, year-on-year growth remained positive, supported by advanced industries. Semiconductor-related production continued to play a critical role, providing essential components for electric vehicles, autonomous driving systems and intelligent transportation infrastructure. In contrast, conventional automobile and general machinery output experienced short-term adjustments, reflecting structural transformation within the mobility sector. Investment trends strongly support the development of Korea’s future mobility ecosystem. Facility investment rose sharply, driven by increased spending on machinery and transport equipment. Significant investment in semiconductor manufacturing equipment underscores Korea’s role in supplying core technologies for electric vehicles, autonomous driving, and smart mobility systems. Investment related to shipbuilding and aircraft also contributed, highlighting momentum in sustainable maritime mobility and aerospace technologies, including low-emission and electrified transport solutions. The construction sector recorded strong growth in completed projects, supported by both building construction and civil engineering activity. Infrastructure development remains closely linked to future mobility, particularly through investments in logistics hubs, smart industrial complexes and transportation infrastructure that enable next-generation mobility services and supply chains. Consumption indicators showed modest short-term softness, with a slight decline in retail sales driven by weaker demand for semi-durable and non-durable goods. However, demand for durable goods, including telecommunications and mobility-related equipment, remained comparatively strong, supporting the broader transition toward connected and intelligent mobility solutions. Composite economic indicators reinforced the positive medium-term outlook. Improvements in both the Composite Coincident Index and the Composite Leading Index reflect rising employment, increased imports of capital goods and improved financial market conditions. These trends suggest that recovery momentum is broadening across sectors that underpin Korea’s future mobility strategy. Overall, the December 2025 KotraExpress illustrates that Korea’s economic recovery is increasingly aligned with structural transformation toward future mobility. Strong investment in semiconductors, transport equipment, digital services and infrastructure is reinforcing Korea’s competitiveness in electric, autonomous and smart mobility. These developments enhance the country’s attractiveness as a destination for foreign investment across the future mobility value chain, from core components and systems to services and infrastructure.   (ICE SEOUL)

Fonte notizia: Invest Korea