Daegu‑Gyeongbuk and Gangwon regions in South Korea see modest early‑year economic rebound

The Bank of Korea’s regional branches reported that the Daegu‑Gyeongbuk (Daegu–Gyeongbuk) area posted a slight improvement in the first half of 2026 compared with the previous half‑year, with modest gains in manufacturing and services output. Production of mobile phones, components and steel rose a little, while display and automotive parts remained flat. Service activity, especially in accommodation and food‑service, increased, but construction output fell due to high project costs and weak commercial‑real‑estate demand.

In Gangwon province, the Bank of Korea’s Gangwon branch observed a similarly muted outlook. Manufacturing and construction output stayed near the prior period’s level, while service production grew modestly. Private consumption rose slightly, but equipment investment slipped. Employment in Gangwon showed a small increase, contrasting with a decline in employment in Daegu‑Gyeongbuk. Consumer‑price inflation accelerated to around 2.5‑2.6%, driven in part by higher oil prices, adding pressure on household finances. Both regions expect manufacturing and construction to remain near current levels in the coming months, while services may continue modest growth.