South Korea's industrial output rose for the second straight month in April on the back of a rise in the semiconductor and oil refining sectors, government data showed Friday, with the facility investment also gaining ground over the period.

The industrial output increased 0.7 percent on-month last month, following a 1.5 percent rise in the previous month, according to the data from Statistics Korea.

Production in the mining and manufacturing sector increased 1.6 percent on-month, led by the semiconductor sector that rose 6.5 percent over the period, the data showed.

"Following the release of new smartphones, such as the Galaxy S10, the production of chips increased," the statistical office said.

The output in the oil refinement segment shot up 11.2 percent as well.

Production in the service sector increased 0.3 percent on-month helped by the construction and engineering services, the data showed.

Facility investment moved up 4.6 percent last month from March due to increased spending on machineries.

Retail sales decreased 1.2 percent in April from a month earlier due to falling sales of electronics and telecommunication devices.

The sales, however, moved up 1.4 percent on-year on the back of a strong performance of cosmetics and clothes.

"Considering that industrial output and facility investment gained ground on-month for the second consecutive month, the figures are clearly on an improved track compared to the past," the statistics office said.

The data came as Asia's fourth-largest economy unexpectedly contracted an estimated 0.3 percent in the first quarter of the year from three months earlier, due to a sharper-than-expected slump in exports and facility investment.

The Bank of Korea recently slashed its economic outlook for the year to 2.5 percent from 2.6 percent, clinging to hopes that economic conditions will get better during the second half of the year.

But the flaring-up trade dispute between the US and China -- Seoul's top two trading partners -- is feared to further complicate the country's economic situations, analysts said. (Yonhap)