South Korea’s industrial output is declining, adding to signs of slow growth in Asia’s third-largest economy. Production dropped by 0.3 percent from November. The government’s move to tighten lending regulations proved disastrous. Bank of Korea raised interest rates by 4.5 percent, a five-year high, which faded the confidence of investors and resulted in decline of domestic sales for companies including Kia Motors Corp. (dropped 4.4 percent), Hyundai Motor Co and LG Electronics Inc. Growth in private spending slowed to 3.6 percent in the fourth quarter from a year ago, compared with a 4 percent gain the third quarter. Korean economy grew 4 percent in the quarter from a year earlier, the slowest pace since the second quarter of 2005. Fourth-quarter economic growth slowed as exports fell for the first time in two years and consumer spending remained sluggish.