The government has assessed that the economic recovery trend is continuing, driven by robust exports and increasing investment.

It also noted that consumption is showing signs of improvement, though at a modest pace.

In its October issue of the Recent Economic Trends (Green Book) released today (October 16), the Ministry of Finance and Economy stated, "The South Korean economy is sustaining a solid economic recovery, characterized by a sharp surge in exports, favorable growth in investment, and a modest improvement in consumption."

While the September issue shared a similar assessment mentioning general domestic demand improvements such as consumption, this month's report distinguished between investment and consumption.

Exports, which are underpinning the economic recovery, continue to show strength.

Exports in September (based on customs clearance, preliminary) rose 83.5% compared to the same month last year, while average daily exports increased by 104.9%.

By item, computers (435%) and semiconductors (263%) recorded significant increases, while cosmetics (31%) and ships (30%) also grew.

Investment also showed an upward trend.

Facility investment in the second quarter (proliminary GDP figures) increased by 0.2% from the previous quarter and 6.3% from the same period last year.

However, the facility investment index for August dropped 9.5% from the previous month.

This was due to a 32.8% plunge in transportation equipment investment—which tends to experience high monthly volatility—despite a 1.6% rise in machinery investment.

Compared to the same month last year, it increased by 16.1%.

Consumption indicators presented mixed trends.

Private consumption in the second quarter rose 0.4% from the previous quarter and 2.4% from the same period last year.

However, retail sales in August fell 1.8% from the previous month.

The government explained that a sharp decline in automobile production—triggered by fewer working days during the August holiday season and strikes in the auto industry—negatively affected related consumption indicators.

On the positive side for future consumption, the September consumer sentiment index rose 2.1 points from 104.5 the previous month to 106.6, rebounding after a month.

Conversely, the growth rate of department store card approvals slowed to 2.7% from 6.0% in the previous month, acting as a negative factor.


Conditions such as inflation and employment remain challenging.

The ministry analyzed, "Amid slightly heightened uncertainties surrounding the Middle East war, pressures on livelihood continue due to inflation driven by high oil prices and difficult employment conditions in vulnerable sectors and classes."

Consumer inflation in September rose 2.9% compared to the same month last year.

Although the growth rate slowed down from 3.1% in August, it remains close to the 3% range.

In the labor market, while the total number of employed persons increased, sluggishness persisted centered around young adults and vulnerable groups.

The number of employed individuals in September increased by 113,000 compared to the same month last year, marking growth in the 100,000 range for the third consecutive month, but employment for youth (aged 15–29) declined for the 47th straight month.

Regarding the global economy, the ministry evaluated, "It continues a moderate recovery, but uncertainties related to the Middle East war and U.S. tariff measures persist."

(Photo: Yonhap News)