Manufacturing Output and Construction Drop Sharply in Gwangju and Jeonnam... Consumer Prices Up 2%

Production and Exports Decline in Gwangju and Jeonnam
Construction Starts in Gwangju Plunge by 98%
Consumer Prices Remain in the 2% Range for Three Consecutive Months

Although manufacturing production, construction investment, and exports in the Gwangju and Jeonnam regions decreased compared to the same period last year, consumption, such as sales at large retail stores, increased. The inflation rate has remained in the 2% range for the past three months.

According to the real economy trends report by the Gwangju-Jeonnam branch of the Bank of Korea on the 19th, manufacturing production in Gwangju in January this year decreased by 8.0% year-on-year, as the automobile and trailer sector dropped by 24.3% and rubber and plastic by 19.6%. In Jeonnam, manufacturing production declined by 1.8% compared to the same month last year, mainly due to decreases in primary metals (-5.3%) and chemical products (-2.7%).

Sales at large retail stores in Gwangju increased by 8.5%, with both department stores (5.8%) and large supermarkets (11.9%) seeing growth. In Jeonnam, large retail store sales also rose by 13.1% year-on-year.

In construction investment, the construction start area in Gwangju dropped by 98.0%, mainly due to a significant decrease in residential buildings such as apartments (-99.8%). In Jeonnam, the construction start area declined by 73.2% year-on-year, primarily in residential (-86.8%) and commercial (-78.6%) buildings.

Exports in Gwangju fell by 22.0% as machinery including automobiles (-24.4%) and electrical equipment and electronic components (-19.1%) decreased. However, imports increased by 11.6%, mainly in electrical equipment and electronic components (15.1%) and agricultural, fishery, and mining products (13.3%).

Similarly, in Jeonnam, exports decreased by 24.2% year-on-year, mainly due to declines in chemical industrial products (-32.0%) and petroleum products (-31.0%). Imports also dropped by 7.9%, mainly in crude oil and agricultural, fishery, and mining products (-11.5%).

In February this year, the consumer price inflation rate in Gwangju rose by 2.1% year-on-year, mainly due to increases in food and lodging (3.1%) and transportation (2.5%). Looking at recent trends, the consumer price inflation rate was 2.0% in December last year, 2.2% in January, and 2.1% in February, steadily remaining in the 2% range.

The consumer price inflation rate in Jeonnam was 2.2%, mainly due to increases in food and lodging (2.8%) and transportation (3.9%).

In January this year, apartment sale prices in Gwangju fell by 0.2% compared to the previous month, while jeonse prices rose by 0.1%. In Jeonnam, apartment sale prices dropped by 0.2% month-on-month, while jeonse prices remained stable.