South Korea's October PMI drops

VTV.vn - Manufacturing activity in Asia's fourth largest economy, South Korea, continued to decline in October, reflecting cautious business sentiment.

US President Donald Trump and South Korean President Lee Jae-myung have signed an agreement to cap tariffs on Korean cars and parts at 15 percent.

Manufacturing activity in Asia's fourth-largest economy , South Korea, continued to decline in October, reflecting cautious sentiment among businesses amid an uncertain global trade picture due to US tax policies.

According to S&P Global, the South Korean manufacturing Purchasing Managers' Index (PMI) fell to 49.4 in October, from 50.7 in September. This is the eighth month in the past nine to record a decline in manufacturing activity. Factories reported a sharp drop in new orders, especially from the US market, as new tariffs hit exports. The new orders index fell to 47.6, while output stood at 49.5. Despite rising input costs, businesses are still trying to pass some of the burden on to customers. Last week, US President Donald Trump and South Korean President Lee Jae-myung signed an agreement to limit tariffs on Korean cars and parts to 15%.

However, according to data from the Ministry of Statistics and Statistics of Korea, the overall facility investment index across all industries increased 4.3% from a year earlier in January-September 2025. This is the largest increase since 2021, when the figure increased 11.3% year-on-year.

The growth was driven by increased investment in the automotive and chip industries. Investment in automotive facilities jumped 15.6% year-on-year, marking the largest increase in 25 years since 2000. The auto industry has been expanding investment to build electric vehicle (EV) production facilities and enhance future competitiveness in autonomous driving and artificial intelligence (AI) technologies.

Investment in semiconductor manufacturing equipment increased by 15.7%, the largest growth since 2021. Experts attributed the growth to the completion of memory chip inventory adjustments and the industry entering a so-called super-growth cycle, driven by AI paradigm shift.

Source: https://vtv.vn/pmi-thang-10-cua-han-quoc-sut-giam-100251103184456487.htm