Industrial output in South Korea reduced for two months in a row as last month's ferry sinking disaster dampened confidence among consumers, a government report showed Friday.

Production in all industries, including manufacturing, service, construction and public administration sectors, shed 0.5 percent in April from a month earlier, after falling 0.6 percent in the prior month, according to Statistics Korea.

Manufacturers and builders showed an upbeat picture, but service companies suffered difficulties amid sluggish domestic demand caused by one of the country's worst maritime disaster.

The ferry Sewol capsized and sank off the southwestern coast on April 16, leaving more than 300 people, mostly high school students, dead or missing. Consumers refrained from entertainment and travel since the day the ferry sank, with deep grief sweeping through the entire country.

The government announced a plan in early May to frontload 7.8 trillion won (7.6 billion U.S. dollars) in the second quarter to bolster the lackluster private consumption. Consumer confidence fell to an eight-month low in May.

A statistical official told a press briefing that the ferry disaster had a negative effect on the service sector output, saying this disaster was different from others that had a limited impact on the economy. Endi

Go to Forum >>0 Comment(s)