S. Korea's industrial output in Jan. sees biggest drop in nearly 5 years

We begin with the triple tumble if you will of Korea's industrial output facility investment and retail sales in January amid growing concerns over the broader impact of U.S. tariffs.

Park Kun-woo has our top story.

South Korea's production, investment, and consumption all dropped in January, according to data from Statistics Korea on Tuesday, marking the first decline in two months.

"That was mainly due to the base effect from relatively strong growth the previous month and fewer working days due to the long Lunar New Year holiday."

Overall industrial output in January decreased by 2-point-7 percent on-month.

That's the largest drop in nearly five years, since early 2020 when the number of COVID-19 cases started to surge.

The mining and manufacturing sector fell by over two percent, despite a slight increase in chip production.

In investment, facility investment plunged more than 14 percent on-month, the biggest drop in over four years, driven by declines in machinery and transport equipment.

Construction and civil engineering project results also fell, contributing to the overall drop in investment.

Consumption also decreased in January by point-6 percent compared to the previous month, with drops seen in items such as cosmetics.

One expert said it will be difficult to see any positive signs across the board throughout the year, especially regarding the tariff war.

"Exports will decline dramatically. Korean companies are exporting goods produced in China to the United States; that will be devastating. And another one is many Korean companies has established the factories in Mexico."

Amid these challenges, the Finance Ministry has vowed to strengthen efforts to support the recovery of people's livelihoods and boost exports through funding.

Park Kun-woo, Arirang News.