South Korea's industrial output advanced in December from a month earlier, helped by demand for automobiles and semiconductors, a government report showed Friday.

According to the report by Statistics Korea, production in the mining, manufacturing, gas and electricity industries moved up 3 percent last month from a month earlier. Compared with a year earlier, it inched up 0.4 percent.

The increase marks the highest on-month growth since the 3.7 percent gain in September 2009 and the second month in a row that productivity moved up compared to the previous month.

Production in the service sector, however, remained flat on-month and expanded 3 percent from a year earlier, the report showed.

For all industries, output moved up 0.9 percent from November and rose 1.8 percent vis-a-vis December 2013.

The report showed that for 2014, as a whole, industrial output stood still compared to 2013, with services gaining 2.2 percent on-year.

In regards to all industries, numbers moved up just 1.1 percent in 2014 from the previous year, the lowest yearly growth since 2000. The statistical agency said the weak annual showing was mainly brought on by a minus 0.8 percent decline in the construction sector that was affected by weak demand for public works projects and offset modest gains in retail sales and investments.

For December, manufacturing and utilities helped growth, while mining remained weak.

"The rise in output in automobiles, semiconductors and related parts played a key role in pushing up numbers for the month, covering for drops in audio and video equipment and weak performance in mining," said Jeon Baek-geun, director of the short-term industrial statistics division.

Car products jumped 6.3 percent, with computer chips and related parts gaining a solid 4.4 percent on-month.

The data showed the average operational rate at the country's factories improving for the second straight month to 76.2 percent in December, up 2 percentage points from November.

Output in manufacturing and mining accounted for 33.2 percent of all industrial production last month, with the service and construction sectors making up 53.7 percent and 6.4 percent, respectively. Public administration and utilities made up 6.6 percent of the total.

Retail sales and investments, key barometers of economic health, advanced. Retail sales gained 2.2 percent on-month thanks to demand for durable and quasi-durable goods, a 4.5 percent increase compared to the year before.

In investments, money that went to the production infrastructure of automobiles, electricity and electronics pushed up figures by 1.7 percent on-month and 13.8 percent compared to the year before.

The latest data, on the other hand, showed construction work declining 0.8 percent on-month and falling 3.2 percent from the year before.

Reflecting sluggish demand in the construction market, the number of new orders secured by companies fell 3.3 percent on-year.

The finance ministry assessed December as showing steady improvements in industrial production, retail sales and business investment.

"In the field of industrial output, the automobile sector seems to be shaking off troubles triggered by labor strikes that took place from August through October," it said. The ministry said better figures for both shipments and inventory also indicated positive changes, while the rise in retail sales last month and the month before marked the first time since September-October 2009 that numbers moved up for two consecutive months.

For the first quarter of 2015, the finance ministry said it expects gradual recovery in consumption and investment that can all bolster output.

It said drop in crude oil prices and government policy measures to fuel growth should boost demand and production.

On the other hand, the ministry cautioned there remains external risks, such as slower growth in oil producing countries that needs to be monitored carefully.

Other ministry officials said there is a good chance of industrial output continuing to do well in January, especially since the Lunar New Year falls in mid- February this year, compared with late January in 2014. More working days translates into greater productivity numbers. (Yonhap)