(2nd LD) S. Korea's industrial output grows for 4th month in Oct

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SEOUL, Nov. 30 (Yonhap) -- South Korea's industrial output grew for a fourth
straight month in October as factories produced more semiconductors and visual
and audio equipment, amid signs of a faster-than-expected economic recovery, a
government report showed Monday.

According to the report by the Statistics Korea, production in the mining and
manufacturing sectors expanded 0.2 percent last month from a year earlier. This
marked an advance for four straight months since July when production started to
grow after a protracted slump.
The latest output figure, however, is lower than a 3.9 percent annual advance
predicted in a poll conducted by Yonhap Infomax, the financial news arm of Yonhap
News Agency. Production also fell 3.8 percent from a month earlier after a
revised 5.6 percent growth, the report showed.
"The on-month decline is mainly due to less working days in October as the
Chuseok harvest holiday fell in that month unlike last year, when it came in
September. Except that, output still expanded 4.2 percent," Yun Myung-joon,
director of the agency's short-term industry statistics division, told a press
conference. "We can still say that the economy continues rebound as output,
consumption and investment are all increasing."
Industrial output kept shrinking since late last year when the global financial
markets and economy were hurled into chaos by the collapse of Lehman Brothers.
It, however, turned positive in July for the first time in 10 months and remained
in positive terrain ever since.
With exports and domestic consumption showing signs of rebound, optimism is
growing that the Korean economy is fast pulling out of the downturn. Reflecting
latest economic conditions, major think tanks at home and abroad are revising
upward their growth outlooks for South Korea.
In mid-November, the Organization for Economic Cooperation and Development
predicted the nation's gross domestic product will grow 0.1 percent this year
before expanding 4.4 percent in 2010. It was the first time that South Korea's
economy was forecast to avoid negative growth this year.
According to the Bank of Korea, the country's gross domestic product expanded 2.9
percent during the third quarter from three months earlier, a sharp turnaround
compared with a 5.1 percent plunge posted in the final three months of 2008.
Other data unveiled along with the latest output figures support the upbeat mood,
indicating that local companies might turn positive about the economy.
According to the report, consumer goods sales also grew 9.8 percent on brisk
demand for vehicles, car fuel and electronics goods, marking the sixth straight
month of on-year expansion.
Facility investment by companies grew 0.3 percent from a year earlier, keeping
its expansion for a second straight month. The nation's average factory operation
ratio, however, dropped to 77.3 percent from 80.3 percent in September.
"In September, tax incentives for car sales resulted in ramped-up operation among
automakers. Though the figure dropped slightly from a month earlier in October,
the overall facility operation ratio still remains robust," Yun explained.
kokobj@yna.co.kr
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