South Korea's overall industrial output in May rebounded from April thanks to the service industry.
Data from Statistics Korea show the country's industrial production index in May rose to one-hundred-17.one, up point-eight percent from April.
It was led by output in the service industry, which rebounded by 1.1 percent on-month.
Sports and leisure saw growth of six.five percent.
The agency attributes this to the end of social distancing.
"As service industry output continued to be strong, overall industrial production shifted to an increase. Domestic spending has improved along with corporate investments. This has led to an overall economic recovery."
During the same period, production in the construction industry rose 5.9 percent.
Along with overall industrial output, there was a 13-percent jump in corporate investment as companies moved to shore up their supplies.
"When there's economic uncertainty, companies need to beef up their inventories to maintain their supply networks and keep their products in the market. So, companies are reinvesting in their inventories to keep them at this minimum required level."
However, retail sales, a barometer for consumer spending, fell slightly from the month before by zero.1 percent.
This was mainly due to lower demand for semi-durable goods like clothing, and entertainment and sports goods, which dropped by 1.2 percent.
An expert says this is mainly due to economic uncertainty.
"In general, economic uncertainty means households cannot suddenly start spending more.
But if the uncertainty continues, people are not going to hold back spending indefinitely consumption will resume eventually.
Statistics Korea says the uncertainty is because of the Ukraine crisis and monetary tightening around the world.
SHIN Ha-young, Arirang News.