Korea's economic recovery remains solid, led by exports: finance ministry
Summary
Korea's economy continues to show solid signs of recovery, led by robust exports and improving domestic consumption, the finance ministry said Friday. The ministry kept its positive monthly assessment despite noting lingering uncertainty from the war in the Middle East and inflation pressure from high oil prices. It said exports rose 68.7 percent in August from a year earlier, while jobs increased by 184,000 and the unemployment rate stayed at 2 percent. The government also pledged measures to stabilize prices ahead of Chuseok and said consumer prices are expected to rise 2.7 percent this year if no other factors emerge.
Key Facts
- Korea's exports surged 68.7 percent in August from a year earlier, helped by strong semiconductor shipments.
- The country added 184,000 jobs in August, the largest on-year gain since March, when 206,000 jobs were added.
- The unemployment rate in August remained unchanged at 2 percent, while the employment rate for people aged 15 to 29 fell to 44.1 percent.
- Consumer prices rose 3.1 percent from a year earlier in August, up from a 2.8 percent increase in July.
- A finance ministry official said fuel price caps should limit the initial impact even if crude prices stay above 100 dollars per barrel, and consumer prices are expected to rise 2.7 percent this year unless other factors intervene.
Shoppers purchase fruit at a traditional market in Seoul, Sept. 6. Yonhap
Korea's economy continues to show solid signs of recovery, supported by robust exports and improving domestic consumption, the finance ministry said Friday.
The Ministry of Finance and Economy offered the assessment in its monthly economic report, known as the Green Book, maintaining its positive assessment from the August report while noting that uncertainties surrounding the war in the Middle East persist.
"Recently, the South Korean economy has been showing solid signs of recovery, supported by a substantial increase in exports and improving domestic consumption," the report said.
Korea's exports surged 68.7 percent in August from a year earlier, buoyed by strong semiconductor shipments.
"However, as uncertainties related to the war in the Middle East have widened somewhat, pressure on people's livelihoods continues amid inflation caused by high oil prices and employment difficulties faced by vulnerable groups and sectors," it added.
In August, Korea added 184,000 jobs from a year earlier, while the unemployment rate remained unchanged at 2 percent. The increase marked the largest gain since 206,000 jobs were added on-year in March.
The employment rate for people aged 15 to 29, however, came to 44.1 percent, down 1 percentage point from a year earlier and marking the 28th consecutive month of decline.
Consumer prices rose 3.1 percent from a year earlier in August, accelerating from a 2.8 percent on-year rise in July.
The finance ministry vowed to shield the economy from the fallout of the Middle East war, including through measures to stabilize prices of key items ahead of Chuseok, the Korean equivalent of Thanksgiving, which runs from Sept. 24-27.
"The government will promptly implement the economic growth initiatives planned for the second half of 2026 to address post-war challenges, revitalize growth potential and tackle economic polarization," it said.
Touching on the recent surge in global oil prices, an official from the finance ministry said the impact on the Korean economy is expected to be limited due to the fuel price cap currently in place.
"Even if crude prices hover above $100 per barrel, there would be no initial shock to the economy due to the fuel price cap," the official said. "Unless there are other factors, consumer prices are expected to rise 2.7 percent this year."
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