South Korea Factory Expansion Continues as Export Orders Reach Six-Year High

Seoul, South Korea, 1 September 2026 – South Korea's manufacturing sector expanded for a ninth straight month in August, supported by export demand tied to the artificial-intelligence and semiconductor investment cycle. The purchasing managers' index registered 52.3, easing from 53.1 in July but remaining above the 50-point expansion threshold. The new-orders sub-index stood at 53.5 compared with 54.8 previously, while export demand increased at the strongest pace since November 2020.

The moderation in headline growth indicates that factory momentum is broad but not uniform. Semiconductor exports have helped offset weakness in construction investment and supported stronger-than-expected second-quarter economic growth. Future performance will depend on global electronics orders, inventory conditions and the timing of capacity additions. The figures should be considered within the broader setting of Korean manufacturing and export competitiveness, where short-term market reactions can differ from the longer-term economic effect.