The S&P Global South Korea Manufacturing PMI rose to 54.8 in May 2026 from 53.6 in April, marking the strongest expansion since March 2021. Output and new orders grew at their fastest pace in around five years, supported by stronger domestic demand and inventory-building efforts as firms sought to guard against rising costs linked to the Middle East war. Production growth also hit a five-year high, while purchasing activity increased at the quickest rate since July 2021. Stronger demand encouraged manufacturers to expand payrolls, with employment rising at the fastest pace since March 2013, while backlogs increased for a fifth straight month. However, delivery times lengthened further amid raw material shortages and disruptions. Input cost inflation remained near April’s record high, driven by higher raw material, oil prices and a weaker currency, while selling-price inflation stayed among the highest in the survey’s history. Lastly, business confidence improved to a three-month high.

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