In the first quarter of this year, prices surged nationwide, particularly rising significantly in Sejong, Gangwon, and North Jeolla. Retail sales, which decreased nationwide last year, showed recovery in most regions during the first quarter. However, Jeju and Daejeon were reported to have not recovered from sluggish retail sales.
According to the first quarter regional economic trends released by Statistics Korea on the 13th, the nationwide consumer price index rose by 2.1% compared to the same period last year. By region, Sejong saw the largest increase at 2.6%, followed by Gangwon (2.3%), North Jeolla (2.3%), South Jeolla (2.2%), and Gyeonggi (2.2%). Conversely, Jeju (1.6%), Ulsan (1.9%), and Daejeon (2.0%) had lower inflation rates than the national average. By item, the highest increases were seen in petroleum at 5.4%, personal services excluding dining at 3.2%, dining at 3.0%, and processed foods at 3.0%.
As sluggish domestic demand continued last year, retail sales, which saw the largest decline in 21 years, recovered in 12 out of 17 regions during the first quarter. Retail sales increased in 12 regions, including Busan (4.7%), South Gyeongsang (4.6%), and Ulsan (3.8%). This was attributed to an uptick in sales of passenger cars, fuel retail stores, supermarkets, general stores, and convenience stores. However, five regions, including Jeju (-7.0%), Daejeon (-2.9%), and Seoul (-2.1%) experienced declines. In Jeju, sales decreased due to the impact on duty-free shops, while in Daejeon, declines were noted in passenger cars and fuel retail stores, and Daegu saw decreases in specialized retail stores.
In the first quarter, industrial production increased by 2.4% compared to the same period last year, driven by increased production in semiconductors, electronic components, and pharmaceuticals. While Gangwon (-12.2%), Sejong (-6.6%), and Daegu (-5.2%) saw reductions in the production of electricity, gas, food products, and other machinery, Gyeonggi (8.8%), Gwangju (6.0%), and Daejeon (5.7%) experienced significant increases, propelling nationwide growth.
The service industry's output increased by 0.4% compared to the previous year, owing to growth in transportation and warehousing as well as health and welfare sectors. Sejong (4.0%), Seoul (1.2%), and Incheon (0.8%) experienced increases in service sector output, primarily in arts, sports, leisure, real estate, and health and welfare. In contrast, Daegu (-2.9%), South Gyeongsang (-2.9%), and North Gyeongsang (-2.8%) saw declines due to reduced production in real estate and other sectors.
Construction saw significant regional disparities. Nationwide, construction orders decreased by 7.7% compared to the same period last year. Regions like Gwangju (-88.9%), South Gyeongsang (-69.3%), and South Jeolla (-63.9%) saw declines in orders for dwellings, offices, stores, and power generation and transmission. However, Sejong (361.7%), North Chungcheong (266.1%), and Seoul (86.0%) saw increases in orders for dwellings, leading to an overall increase in construction orders.
Exports decreased in 10 regions while only increasing in 7, resulting in a 2.1% decline compared to the same period last year. Regions such as South Jeolla (-19.3%), Daegu (-16.6%), and Sejong (-11.0%) experienced reductions in exports of diesel and other organic and inorganic compounds, as well as other chemical products. On the other hand, Jeju (45.3%), North Chungcheong (9.0%), and Daejeon (8.9%) increased exports, focusing on general machinery, memory semiconductors, and other transport equipment.
Imports decreased by 1.4% compared to the same period last year, primarily due to reductions in crude oil, coal, and gas. The declines were centered in North Gyeongsang (-21.5%), Gangwon (-21.3%), and South Jeolla (-14.9%). Conversely, Jeju (19.4%), Gwangju (19.3%), and Busan (5.9%) saw increases driven by imports of aircraft, processors and controllers, and ships.
The nationwide employment rate stood at 61.8%, showing an increase of 0.2 percentage points from the first quarter of last year, particularly among those in their 30s and those 60 and older, as well as those in their 40s. Employment rates rose in North Chungcheong (1.9 p.p.), Gangwon (1.3 p.p.), and North Chungcheong (1.2 p.p.), while they fell in Gwangju (-1.2 p.p.), Seoul (-1.1 p.p.), and North Jeolla (-0.8 p.p.).
The nationwide unemployment rate rose to 3.4%, increasing by 0.1 percentage points compared to the same period last year, particularly affecting those aged 15 to 29 and those over 60. Unemployment rates increased in Seoul (1.3 p.p.), Sejong (0.9 p.p.), and North Jeolla (0.8 p.p.), while they decreased in Ulsan (-1.8 p.p.), Gangwon (-0.7 p.p.), and Daegu (-0.6 p.p.).
Population movement showed a deepening concentration in the metropolitan area. Seven regions, including Incheon (11,091 people), Seoul (6,129 people), and Gyeonggi (5,588 people), experienced net inflows, while ten regions, including Gwangju (-4,945 people), South Gyeongsang (-4,729 people), and North Gyeongsang (-3,524 people), saw net outflows.