South Korea's industrial production experienced a significant decline of 8.1% year-on-year in October, with a 4.0% drop from the previous month. This downturn contrasts with a 3.5% increase in retail sales, indicating strong domestic demand despite weak export-driven manufacturing. The Bank of Korea has maintained steady interest rates amidst uneven inflation and high household debt levels. While the industrial slump could prompt expectations for rate cuts, the robust retail sales figures may delay any immediate policy changes.