Semiconductor Boom Drives North Chungcheong to Top Q2 Manufacturing Output Growth Rate

Ministry of Data and Statistics Releases Regional Economic Trends for Q2

In the second quarter of this year, the growth rate of manufacturing output in North Chungcheong, where major semiconductor factories and companies are concentrated, was the highest in the nation.

According to the “Regional Economic Trends for Q2 2026” released by the Ministry of Data and Statistics on the 19th, nationwide manufacturing output increased by 2.0% compared to the previous year in the second quarter. By province, North Chungcheong posted the steepest increase with a growth rate of 27.8%, more than three times higher than Gwangju (9.1%), which ranked second. North Chungcheong, where the SK hynix plant is located, saw strong growth mainly in semiconductors and electronic components (70.9%). In Gwangju, a notable increase was seen in automobile production (21.8%), among others. In total, manufacturing output increased across eight regions including these, while it decreased in nine others, such as South Jeolla (-9.2%) and Seoul (-5.7%).

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The semiconductor sector also had a significant impact on the regional export performance. Nationwide exports rose by 100.64 billion dollars compared to one year prior. Exports performed well in 16 regions, with only South Gyeongsang showing a decrease (-520 million dollars). By region, Gyeonggi Province (up 50.75 billion dollars) and South Chungcheong Province (up 34.49 billion dollars) recorded the largest increases in exports. In both regions, the growth in exports was driven by memory semiconductors and computer peripherals.

Service industry output expanded by 4.5% nationwide. Output increased in 16 regions, including Seoul (7.5%) and Gyeonggi (4.6%). Seoul recorded a sharp rise, mainly driven by financial and insurance services (21.6%), boosted by a bull stock market. Jeju was the only region nationwide to see a decline in service industry output (-3.0%).

Retail sales, an indicator of consumption trends, rose in nine regions including Seoul (3.8%) and Daegu (3.5%), posting a nationwide gain of 2.4%. In Seoul, department stores (19.3%) led the gains, while in Daegu, performance was boosted by passenger vehicles and fuel retail (7.6%). In contrast, retail sales fell in eight regions, including Daejeon (-5.1%) and South Gyeongsang (-2.7%).

Nationwide consumer prices rose by 3.0% in the second quarter, with all regions showing year-on-year increases. In particular, North Gyeongsang (3.4%), South Gyeongsang (3.4%), and North Jeolla (3.4%) recorded relatively large inflation rates. Nationwide construction orders increased by 10.8 trillion won. Ten regions—including Gyeonggi (7.9 trillion won), Seoul (3.5 trillion won), and North Chungcheong (1.6 trillion won)—posted increases, while other regions such as South Gyeongsang (-1.9 trillion won) and Daegu (-1.4 trillion won) experienced declines.

National import volume rose by 34.53 billion dollars. Imports increased in 16 regions, with Gangwon being the exception (-40 million dollars). Gyeonggi (up 13.72 billion dollars) and Seoul (up 9.55 billion dollars) saw strong growth driven by increased imports of memory semiconductors. The nationwide average employment rate fell by 0.3 percentage points to 63.2%. While the employment rate increased in eight regions, including Jeju (up 1.7 percentage points), it declined in others such as Gyeonggi (down 1.1 percentage points).

This content was produced with the assistance of AI translation services.