South Korea is scheduled to release April industrial production (IP) data on 29 May. IP is expected to have grown by 0.6% y/y, from -0.1% in March following improved business sentiment in manufacturing. The Business Sentiment Index (BSI) rose to 82 from 80 in May and non-manufacturing BSI increased to 78 from 74. In a recent interview, Bank of Korea Governor Lee also noted that unofficial numbers indicated improving business sentiment. Employment in manufacturing likely remained stable, with jobs growth probably topping 3.9% y/y in April. However, slow exports remain a concern – April exports likely dropped 8% y/y and 1.4% m/m, which should limit IP growth. Production growth of 6.7% in semiconductors – a key weight in calculating IP – was likely offset cancelled out by a slowdown in automobile production.
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