Seoul, Nov 9 (IANS) South Korea’s economy has shown signs of a “slight” improvement driven by a rebound in consumer spending, though a slump in the construction sector continues and export growth has slowed, a state-run think tank said on Sunday.
“Despite the contraction in construction investment and a slowdown in export growth, the economy appears to be improving slightly, led by consumption,” the Korea Development Institute (KDI) said in its latest monthly economic assessment, reports Yonhap news agency.
The report noted that semiconductor exports, a key driver of the nation’s outbound shipments, remained strong. However, it warned that the positive momentum could weaken due to the impact of U.S. tariff measures.
In October, South Korea’s exports rose 3.6 percent from a year earlier to $59.57 billion, marking the fifth consecutive month of growth, largely on the back of strong semiconductor demand, according to government data.
By sector, semiconductor exports surged 25.4 percent on-year to $15.73 billion, the highest figure ever recorded for October.
Exports of most other goods, however, declined due to fewer working days caused by the extended Chuseok holiday that fell in the month this year. The October figure also marked a slowdown from a 12.7 percent on-year spike in September.
“The average daily export value has slowed moderately due to weakness in items other than semiconductors,” the KDI said.
The institute added that the slowdown in private consumption is gradually easing, supported by falling market interest rates and continued government stimulus measures.
“Service output, particularly in domestic demand-driven sectors, such as retail and wholesale, continues to recover,” the report said.
In late October, Seoul and Washington finalized an agreement on the details of Seoul’s $350 billion pledge made in exchange for lower U.S. tariffs during summit talks between President Lee Jae Myung and U.S. President Donald Trump, with final coordination under way to release joint documents.
“Although trade conditions have partially improved with progress in U.S.-Korea trade talks and easing U.S.-China tensions, uncertainty remains,” the KDI noted.
—IANS
na/
