Data revealed on Thursday showed that industrial production in South Korea is increasing at faster pace than expected, which is raising hopes for economic recovery.

Statistics Korea reveals that production climbed 8.3 % as compared to 6.9% in April. Economists polled by Dow Jones Newswires forecasted that May increase which is better than 6.7%. Statistics Korea said in a report that in April there is a decline of 1.7% but in May there is an increase in output production by 1.7%. Output has been raised by increase in semiconductor, parts and machinery equipment sectors.

The overall economic growth is target at 5% by the government but at the same time government has to deal with inflation pressure.

Countries which are dominated by exports are having risks from debt crisis in Europe , Japan's devastating earthquake and ongoing unrest in Arab countries.

It was said on Thursday that there was an increase of 8.3% in industrial production of South Korea which is more than the expected 6.9% on yearly basis.