Seoul, Oct 17 – South Korea’s economy is bouncing back from the slow start to 2024, the Finance Ministry said on Friday, giving a bright signal in its monthly Green Book report.
The ministry noted that while the economy still faces global uncertainties, key numbers show an overall up‑trend. The report highlighted a recovery from the dip seen in the first half of the year and said “positive signs for economic recovery are strengthening.”
Industrial output and retail sales
Industrial output was flat in August, and investment in new factories fell 1.1 %. Retail sales, the private‑consumption gauge, slipped 2.4 % from the previous month – the first drop in four months. Still, the economy is keeping pace with broader global trends.
Exports soar thanks to chips
Exports jumped 12.7 % year‑over‑year to $65.95 billion in September, led by strong demand for semiconductors. This level is the highest since March 2022, underscoring how the chip sector keeps South Korea’s trade alive.
Jobs rise, wages improve
The country added 312,000 jobs in September – the fastest on‑year growth in 19 months. Most gains came in the service sector, buoyed by government stimulus that supports hiring. Consumer prices edged up 2.1 % in September, comfortably within the 2 % target range.
Challenges on the horizon
The ministry warned about weak construction investment and a sluggish job market in vulnerable sectors. It also flagged potential export slowdowns due to U.S. tariffs. Global markets remain irritable, and trade conditions could tighten if major countries raise tariffs.
South Korea and the U.S. announced a trade framework in late July, where Seoul pledged $350 billion of investment in exchange for a tariff cut from 25 % to 15 %. The deal is still in progress; officials in Washington are set to finalize the remaining details.
With a clearer economic outlook and strong export momentum, South Korea aims to navigate global headwinds while keeping domestic growth on track.
Source: ianslive
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