Economic recovery continues despite uncertainties: finance ministry

Samsung Electronics' semiconductor production line in Pyeongtaek, Gyeonggi Province / Courtesy of Samsung Electronics

Korea's economy continues to be on the path to recovery, supported by stronger domestic demand and solid performance in the semiconductor sector, despite lingering uncertainties, the finance ministry said Friday.

The Ministry of Economy and Finance made the assessment in its monthly economic report, known as the Green Book, marking the fourth consecutive month it has used the term "recovery" to describe the economic situation.

"Recently, our economy has continued to show a recovery trend, backed by improvements in domestic demand, including consumption, and robust exports led by semiconductors," the report said.

However, the ministry cautioned that uncertainties remain, citing ongoing employment difficulties in vulnerable sectors, such as construction, and heightened month-to-month volatility in key indicators due to base effects from sharp increases in the third quarter.

The report also cited the continued impact of U.S. tariff measures and other external risks as sources of concern.

"The global economy is facing a worsened trade environment due to tariffs, and there are concerns over volatility in international financial markets and a slowdown in trade and growth due to geopolitical risks," the report said.

In December 2025, the country added 168,000 jobs from a year earlier, sharply down from the 225,000 on-year increase recorded in November. The December figure marked the smallest on-year growth since August.

Employment losses continued in the manufacturing and construction sectors, as well as among the younger population.

Industrial output grew from a month earlier in November, driven by robust semiconductor production, while facility investment increased 1.5 percent on-month, led by higher investment in machinery

Retail sales, a gauge of private spending, dropped 3.3 percent over the period, following a brief rebound the previous month.

In December, the country's exports expanded 13.4 percent from a year earlier to $69.6 billion, extending their winning streak to 11 consecutive months on the back of strong demand for semiconductors.

Consumer prices increased 2.3 percent on-year in December, exceeding the central bank's 2 percent target for the fourth consecutive month, largely due to rising import prices amid the weak Korean won.

Looking ahead, the government said it will continue to implement active macroeconomic policies and measures to boost consumption, investment and exports in order to sustain economic recovery momentum.

It also pledged to accelerate its economic growth strategy for this year, aimed at raising potential growth, promoting balanced national development and reducing inequality.