A survey released on Thursday showed that South Korea's manufacturing activity grew at its fastest pace in four months in September, largely driven by strong performance in the semiconductor and automotive sectors, which pushed export demand to its fastest growth in fifteen and a half years.

The S&P Global South Korea Purchasing Managers' Index (PMI) rose to 53.9 in September, up from 52.3 in August, marking the highest level since May. The index has now remained above the 50 mark — the threshold separating expansion from contraction — for the tenth consecutive month.

Usamah Bhatti, an economist at S&P Global Market Intelligence, said: "Rates of growth in new orders and output were the sharpest in around five-and-a-half years, with panel feedback indicating that the expansion was supported by a coordinated upturn across the semiconductor and automotive sectors."

Output growth hit its highest level since March 2021, while new order growth reached its strongest since February 2021. New export orders rose at the fastest pace since March 2011, with particularly strong performances in European and Asian markets. Manufacturers' optimism about the year ahead climbed to its highest point in eight months.