Regional economies in South Korea show mixed third-quarter results

Economic monitoring by the Bank of Korea reveals divergent trends across the Incheon and Daegu-Gyeongbuk regions during the third quarter.

In Incheon, the economy remained at the same level as the previous quarter. While pharmaceutical production rose significantly, driven by Celltrion’s increased sales, the manufacturing sector faced headwinds from declines in petrochemicals, refining, and machinery. The construction industry also saw a slowdown due to rising costs and decreased investment. However, the service sector showed slight improvements, supported by increased passenger numbers at Incheon International Airport.

In the Daegu-Gyeongbuk region, the economy saw a slight improvement compared to the previous quarter. This growth was largely driven by the manufacturing sector, specifically in mobile phone and component production, following the release of new smartphone models. The service sector remained stable, with gains in accommodation and food services due to increased tourism. Conversely, the construction sector continued to struggle, with private sector building starts declining due to high construction costs and management difficulties among local firms.