The seasonally-adjusted production index in all industries, which exclude the agriculture, livestock, and fishery sector, stood at 111.6 in March, up 1.6 percent from the previous month, according to Statistics Korea.
Production among manufacturers gained 5.7 percent in March from a month ago on higher semiconductor demand.
Chip output jumped 35.1 percent last month, and those for cars and electronic parts were added in single figures.
Production in the services industry grew 0.2 percent in March from the previous month as the moderated COVID-19 pandemic and good weather increased outdoor activities.
The seasonally-adjusted retail sale index, which reflects private consumption, added 0.4 percent in March after rising 5.2 percent in February.
Facility investment dropped 2.2 percent, and completed construction retreated 3.3 percent last month.
The cyclical variation factor for leading economic indicators, which gauge the outlook for future economic situations, fell 0.3 points over the month to 98.2 in March, continuing to slide for the ninth straight month.
The reading for coincident economic indicators, which measure the current economic conditions, gained 0.6 points to 99.9 last month.
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