Seoul: The South Korean economy is on a recovery path following a downturn in the first half of the year, despite ongoing concerns over external uncertainties, as reported by the finance ministry. According to Yonhap News Agency, the Ministry of Economy and Finance has shared its insights in the latest edition of its monthly economic report, the Green Book, which presents a more optimistic outlook than the previous month.
The report highlights that key economic indicators are exhibiting an overall improving trend, suggesting a rebound from the slump experienced earlier this year. In the September edition of the Green Book, the ministry noted that "positive signs for economic recovery are strengthening."
Industrial output remained nearly unchanged in August compared to the previous month, while facility investment saw a decline of 1.1 percent. Retail sales, which serve as a gauge of private consumption, experienced a 2.4 percent drop in August, marking the first decline in four months. However, in September, the country's exports surged by 12.7 percent year-on-year to reach US$65.95 billion, driven by strong semiconductor demand, achieving the highest level since March 2022, as highlighted by the ministry.
Additionally, the ministry reported the creation of 312,000 jobs last month, marking the fastest year-on-year growth in 19 months. This growth was primarily driven by employment gains in the service sector following the implementation of the government's stimulus package. Consumer prices saw a 2.1 percent increase on a year-on-year basis in September, returning to the 2 percent range within a month.
Despite these positive developments, the ministry identified several challenges, including weak construction investment, a sluggish job market in vulnerable sectors, and concerns about a potential slowdown in exports due to U.S. tariff measures. The report also emphasized the persistent volatility in international financial markets and growing concerns over sluggish trade and growth, attributed to deteriorating trade conditions caused by tariff measures imposed by major countries.
In response to these challenges, the government expressed its commitment to making all-out efforts to address trade risks and support domestic companies affected by U.S. tariffs.