South Korea’s economy retains signs of recovery thanks to exports
South Korea’s Ministry of Economy and Finance said that the country’s economy continues to show solid signs of recovery thanks to substantial export growth and improved domestic consumption. According to The Korea Herald, the ministry gave this assessment in its monthly Green Book economic report, maintaining the positive assessment from its August document.
Export growth
In August, South Korea’s exports rose by 68.7% year on year. The growth was supported by significant shipments of semiconductors, the ministry said. The agency also linked the signs of recovery to improved domestic consumption.
Inflation and the labor market
At the same time, the ministry pointed to uncertainty related to the war in the Middle East. In its assessment, pressure on people’s living standards persists due to inflation caused by high oil prices. Vulnerable groups and certain sectors are also facing difficulties in employment.
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In August, the number of employed people in the country increased by 184,000 compared with the same month last year, while the unemployment rate remained unchanged at 2%. This was the largest increase in employment since March, when it stood at 206,000 people year on year.
The employment rate among people aged 15 to 29 was 44.1%, 1 percentage point lower than a year earlier. The indicator declined for the 28th consecutive month. Consumer prices rose by 3.1% year on year in August, following an increase of 2.8% in July.
The government pledged to protect the economy from the consequences of the war in the Middle East, including by stabilizing prices for essential goods ahead of Chuseok, which will last from September 24 to 27. It also intends to implement economic growth initiatives planned for the second half of 2026 to overcome post-war challenges, reinvigorate growth potential and counter economic polarization.
