Ministry of Finance and Economy

In July 2026, total industrial production remained unchanged from the previous month (0.0% m-o-m, +3.1% y-o-y), as a decline in services output (-1.3%, +3.5%) was offset by increases in industrial output (+0.2%, +3.6%) and public administration (+10.4%, +2.0%).   Retail sales (-2.4% m-o-m; -0.8% y-o-y) and construction investment (-1.1%, -3.2%) turned downward, while facilities investment (+7.5%, +24.9%) continued to post strong growth following a substantial increase in the previous month.                                                         (%)        2025 2026 Q1 Q2 Q3 Q4 Q1 Q2   Jul Apr May Jun Total industry output m-o-m 0.2 0.3 0.9 -0.6 1.8 0.9 -0.5 -0.4 2.4 0.0 y-o-y 0.3 1.0 3.6 -0.2 2.9 2.9 2.4 1.9 4.4 3.1 Industrial output m-o-m 0.7 1.0 1.5 -3.4 2.7 1.4 -0.8 -3.0 6.7 0.2 y-o-y 2.9 3.1 7.8 -2.0 2.7 2.1 1.3 -1.1 6.0 3.6 Services m-o-m 0.3 0.4 0.7 1.2 1.4 1.3 -0.8 1.0 0.9 -1.3 y-o-y 0.9 1.6 3.2 2.3 4.2 4.6 3.8 4.6 5.4 3.5 Public administration m-o-m 1.4 -1.3 0.9 -1.3 2.6 -2.6 5.1 -3.5 -4.1 10.4 y-o-y 0.9 -0.4 0.2 -0.4 0.8 -1.1 3.3 -1.4 -4.7 2.0   (%)       2025 2026 Q1 Q2 Q3 Q4 Q1 Q2   Jul Apr May       Jun Retail sales m-o-m 0.6 -0.6 1.2 0.6 2.4 -1.8 -3.7 -0.1 2.7 -2.4 y-o-y -0.8 -0.1 1.6 0.9 3.2 2.2 1.4 1.4 3.9 -0.8 Facilities investment m-o-m -2.2 0.3 0.6 -3.8 13.0 3.7 -4.0 -0.1 6.9 7.5 y-o-y 5.4 5.5 1.2 -6.2 9.8 13.2 7.6 9.3 22.5 24.9 Construction Investment m-o-m -7.2 -2.6 -0.8 -4.1 0.5 0.1 -2.8 3.3 4.2 -1.1 y-o-y -21.1 -17.3 -11.9 -15.1 -6.1 -4.8 -6.6 -3.7 -4.3 -3.2   Despite a high base created by the substantial increase in the previous month, industrial activity in July maintained solid momentum in production and investment. Industrial output increased for the second consecutive month (+6.7% → +0.2%), while facilities investment rose by around 7% for the second consecutive month (+6.9% → +7.5%), driven by increases in both machinery and transportation equipment. The decline in retail sales in July (+2.7% → -2.4%) was largely attributable to temporary factors, including an adjustment in durable goods sales following a sharp increase in June ahead of the expiration of the individual consumption tax cut on automobiles and amid large-scale discount promotions on home appliances. Given the considerable month-to-month volatility, retail sales in June and July combined were 1.5% higher than in April and May, while growth in credit card spending accelerated from 3.7% in July to 4.5% during August 1-26, suggesting that the momentum of the consumption recovery remains intact.   However, with external uncertainties remaining elevated amid the conflict in the Middle East and continued difficulties in people’s livelihoods, the government plans to step up policy efforts to further solidify the economic recovery and ensure that the benefits of growth are broadly felt by the public. Please refer to the attached files.

Statistics Korea released Monthly Industrial Statistics, July 2026 report on August 31, 2026 The Index of All Industry Production in July showed no change from the previous month. Please refer to the attached pdf for the full report. 

The Ministry of Finance and Economy plans to issue Korea Treasury Bonds worth approximately 16,000 billion won in September 2026 through competitive bidding.   Auction Schedule, September 2026 (Unit: KRW billion) Name Auction Notice Auction Date Settlement Date Issue Date Type Volume 2Y KTB 03625-2809 (26-7) August 27 August 31 September 1 September 10, 2026 F1 3,100 3Y KTB 03500-2906 (26-5) September 2 September 7 September 8 June 10, 2026 F 3,200 5Y KTB 04125-3109 (26-9) September 16 September 21 September 22 September 10, 2026 F 3,000 10Y KTB 04250-3606 (26-6) September 9 September 14 September 15 June 10, 2026 F 2,800 20Y KTB 04500-4609 (26-10) September 17 September 22 September 23 September 10, 2026 F 600 30Y KTB 04500-5609 (26-8) August 27 September 1 September 2 September 10, 2026 F 2,500 50Y KTB 00000-7609 (26-11) September 8 September 11 September 14 September 10, 2026 N2 800 Conversion Offer Conventional September 10 September 15 September 17 September 10, 2026 F 400 Inflation-linked September 1 September 4 September 8 June 10, 2026 F 100   FXB 00000-2709 (26-9) September 15 September 18 September 21 September 10, 2026 N/A 1,000 1.       Fungible issue 2.       New issuance   * Under a fungible issue system, new KTBs issued within a specified period (six-month period for 2Y, 3Y, 5Y, 10Y and 30Y KTB, one-year period for 20Y KTB, and two-year period for KTBi and 50Y KTB) are regarded as the same KTB issue.     1) Non-competitive bids option I   For retail investors, KTBs worth 3,040 billion won (no more than 20% of the offered amount in the auction excluding 50Y KTBs) will be allocated first at the highest accepted bid rate.   2) Non-competitive bids option II   A non-competitive purchasing option II is granted to primary dealers (PD) whereby PDs can make additional purchases of 5-30%* of the accepted bid amount within three business days after the auction.   * Up to 20%p of the option is granted to the top-performing PDs, 15%p to the 2nd best-performing PDs, 10%p to the 3rd best-performing PDs, and 5%p to the rest, according to their market-making performances for the last six months. MOEF will grant additional 5-10%p to best performing PDs in the monthly evaluation.   3) Non-competitive bids option III   KTB STRIPS* are supplied on the third business day after the auctions, 310 billion won for 3Y, 5Y, and 10Y KTBs, 360 billion won for 30Y KTBs, and 160 billion won for 20Y KTBs. PDs that have obtained the right to purchase these KTB STRIPS can make purchases of up to 25 billion won.   ＊Non-competitive option Ⅵ Details have yet to be decided. If non-competitive option Ⅵ needs to be implemented, the Ministry will make an announcement on September 22 with a detailed plan.   4) Buyback   Date KTBs to be purchased Amount September 16 10:40-11:00 am    KTB 02875-4409 (24-10) KTB 01875-5103 (21-2) KTB 03250-5303 (23-2) KTB 03250-5403 (24-2) KTB 02625-5503 (25-2)   KRW 1,500 billion * Further details will be provided on September 11 through the BOK website.   5) Conversion offer   Date KTBs to be issued KTBs and KTBis to be purchased Amount September 4 10:40-11:00 am 10Y KTB 04250-3606 (26-6) (Maturing on June 10, 2036)   KTBi 01750-2806 (18-5) KTBi 01125-3006 (20-5) KTBi 01625-3206 (22-6) KTBi 00750-3406 (24-6)   KRW 100 billion September 15 10:40-11:00 am 30Y KTB 04500-5609 (26-8) (Maturing on September 10, 2056)    KTB 03250-4209 (22-11) KTB 03000-4212 (12-5) KTB 02500-5203 (22-2) KTB 03625-5309 (23-7) KTB 02750-5409 (24-8)   KRW 400 billion * Further details will be provided on September 1 (KTBi) and September 10 (KTB) through the BOK website.