2025.08.2823:00:00UTC+00South Korea's Service Sector Growth Slows to 0.2% in July

South Korea's service sector output witnessed a deceleration in growth during July 2025, as the month-over-month rate eased to 0.2% from June's figure of 0.5%. The updated data, released on August 28, 2025, suggests a subdued momentum in the sector, which had previously enjoyed a stronger uptick.

The service sector, a critical component of the Korean economy, with wide-reaching implications for employment and economic stability, appears to be reflecting the broader economic uncertainty. This latest figure indicates the slowest pace of growth in recent months, raising questions about the underlying factors influencing this slowdown.

The July performance marks a notable shift from June's figures, which had already registered a modest increase of 0.5% from the month before it. Analysts will be watching closely to determine if this trend persists, as a continuation could signal a need for policy adjustments to bolster economic activities within the service sector. Investors and policy-makers alike will be keenly focused on upcoming data releases to guide their strategies moving forward.