For the fourth consecutive month, the Korea Development Institute says the local economy is continuing to slow down.
In its economic trends report for February, the KDI says on top of weak production, domestic demand and export growth are also slowing down.
Overall production in all industries in December grew zero.three percent on-year down from November's zero.six percent.
There was also a sharp increase in the manufacturing industry's inventory-to-sales ratio, which rose from 107 percent in October to 116 percent in December, marking the highest figure in two decades.
On the demand side, retail sales grew three percent on-year in December, higher than the 1 percent growth seen in November, but still short of 2018's annual average growth of four.two percent.
Exports, the key driver of Korea's economy, fell for two consecutive months.
After falling by one percent on-year in December, exports dropped near six percent in January on weaker shipments of semiconductors and petrochemical goods, which decreased 23 percent and five percent, respectively.
"Production in manufacturing, services and construction are all slowing down. On top of this, domestic demand and exports are weakening sharply on the slowing global economy and trade. All aspects in the cycle of economic growth -- production, demand and investment -- are contracting."
The KDI says facilities investment remains weak, plunging 14.five percent on-year in December after falling nine percent in November.
It forecasts the Korean economy to grow 2.five percent in 2019, lower than the 2.seven percent growth tallied in 2018, which was the slowest pace in six years.
Kim Hyesung, Arirang News.