The government assessed that positive signals related to an economic recovery are strengthening in the recent economic situation. It judged that a green light for recovery has turned on compared with last month, when it said "positive signals are emerging."
The Ministry of Economy and Finance said in its "Recent economic trends in September 2025," released on the 12th, that "positive signals for recovery are strengthening, such as consumption increasing due to policy effects."
It added, "We will concentrate pan-government capabilities so that the swift execution of the supplementary budget, people's livelihood recovery consumption coupons, and large-scale discount events can serve as a catalyst for boosting domestic demand, including consumption and regional economies," and "We will make every effort to respond to trade risks, including support for damage to our corporations from U.S. tariff imposition."
The ministry releases economic trend reports every month, and this is the Lee Jae-myung administration's fourth assessment. In the "Recent economic trends in August," the ministry said, "Positive signals are also appearing, such as improved consumer sentiment."
Looking at key indicators of industrial activity, in July, mining and manufacturing output, service output, retail sales, and facility investment all increased, while construction investment decreased. Specifically, mining and manufacturing output rose 0.3% from the previous month, and service output increased 0.2% in the same period. Construction output fell 1.0%. Although construction output retreated, overall industry output rose 0.3% month over month as most key indicators increased.
The consumer sentiment index (CSI) for August, which the government used as a basis for recovery, was 111.4, up 0.6 percentage point (p) from the previous month. With 100 as the baseline, a higher number means consumer sentiment is more optimistic than the long-term average. The corporate business survey index (CBSI) for all industries also rose 1.0p in the same period. However, the CBSI is 91.8, below 100.
Domestic card approvals also increased 5.0%. Cho Seong-jung, head of economic analysis at the ministry, explained, "Following 6.3% in July, it rose 5% this month as well," adding, "Although the growth rate is slightly lower than in July, it remains at a high level."
On the expenditure side, retail sales rose 2.4% from the previous month, and facility investment increased 7.9%. Exports in August increased 1.3% from the same month a year earlier on the back of strong semiconductors. Average daily exports were $2.6 billion (about 3.6134 trillion won), up 5.8% from the same month a year earlier.
However, regarding future exports, the ministry said, "Concerns about a slowdown persist due to U.S. tariff imposition."
In August, the number of employed people increased by 166,000 from the same month a year earlier. The unemployment rate was 2.0%. There are signs that inflation is easing. Consumer prices, which had hovered around 2%, rose 1.7% year over year in August as petroleum products and telecom fees fell. The core inflation rate for August, excluding food and energy, was 1.3%.
In July, nationwide home sale prices rose 0.12% from the previous month. Prices fell 0.08% in the provinces but rose 0.33% in the greater Seoul area. Jeonse prices also fell 0.03% in the provinces, but rose 0.11% in the greater Seoul area, pushing nationwide home jeonse prices up 0.04%. Housing transactions decreased. In July, nationwide home sale transactions fell 13.0% from the previous month and 5.9% from the same month a year earlier.