South Korea's industrial production in January is expected to have dropped after a recovery recorded in December. Several market participants have already forecast that the industrial output will witness considerable weakness after the surprise decline in exports in January.

"Our forecast of industrial production in January actually points to a moderate contraction compared with exports data: yoy growth of industrial production will rebound from -1.9% in December to -0.5% in January, while yoy growth of exports will fall from -14.3% to -18.8%", says Societe Generale.

Auto and electronics sectors are likely to decline; however, it is expected to be countered by strength in metal and chemical products. On a yearly basis, industrial output data is expected to be supported by favorable base effects. In January 2015, industrial production had declined 3.7% m/m.