Daejeon, South Korea – The manufacturing sector in South Korea’s Chungcheong region has experienced a sharp downturn, with three out of the four provinces reporting a decline in production. The latest data from the Chungcheong Regional Statistical Office reveals a concerning trend of increasing inventory levels, pointing to a broader economic slowdown.

While Daejeon bucked the trend, recording a 6.4% month-on-month and 11.6% year-on-year increase in industrial production, the other three provinces—Chungbuk, Sejong, and Chungnam—all saw declines. In particular, Chungbuk experienced the most significant drop, with a 7.6% month-on-month and 13% year-on-year decrease.

The decline in manufacturing production can be attributed to several factors, including a sharp decrease in the production of electronic components, computers, and audio-visual equipment in Chungbuk, as well as a significant drop in medical precision optics production in Sejong. Additionally, the electrical equipment sector saw a decline across all four provinces.

The rising inventory levels further underscore the sluggish demand in the region. Daejeon saw a 5% month-on-month and 9.8% year-on-year increase in inventory, while Chungbuk, Sejong, and Chungnam recorded increases of 3.9%, 2.5%, and over 20%, respectively.

The sluggish manufacturing sector has also impacted the retail industry. Sales at large-scale retail stores declined in all provinces except Sejong.

[ⓒ Global Economic Times. 무단전재-재배포 금지]