South Korea’s manufacturing sector showed signs of stabilization in June, with the S&P Global Manufacturing PMI rising to 48.7 from 47.7 in May. Although the index remained below the 50-mark that separates expansion from contraction for a fifth consecutive month, it signaled the softest deterioration in operating conditions in three months. Firms reported continued, though slower, declines in both output and new orders. Purchasing activity also weakened, as manufacturers remained cautious about building up excess inventories. Employment fell again, reversing May’s marginal uptick. On the price front, input cost inflation eased to an eight-month low, leading to only a modest increase in selling prices. Meanwhile, business confidence rebounded sharply, with sentiment toward future activity climbing to a 13-month high. Firms cited expectations of stronger sales driven by new product launches and mass production, alongside hopes for a more favorable domestic and geopolitical environment.