The Ministry of Finance and Economy for the third straight month assessed that "Korea's economy remains in a recovery phase."
In the Jan. Green Book on recent economic trends released on the 16th, the ministry said, "The recovery momentum is continuing, supported by improvements in domestic demand such as consumption and robust exports centered on semiconductors." The ministry publishes a monthly report containing a comprehensive assessment of economic conditions, and because the cover is green, it is called the "Green Book."
Through Oct. last year, the ministry evaluated that "overall improvement is evident and the economy is emerging from the weakness in the first half," but in Nov. and Dec. last year, it issued a more positive assessment, saying "the economy is recovering and has emerged from the weakness in the first half."
However, it cited monthly indicator volatility, employment, sluggish construction investment, and the imposition of U.S. tariff as concerns.
The ministry said, "With the Chuseok holiday pushed to Oct., not the usual Sept., indicators for mining and manufacturing, construction, and facility investment that rose sharply in the third quarter are showing significant monthly volatility due to base effects and the impact of the long holiday, including adjustments."
It added, "Uncertainties persist, including employment difficulties centered on vulnerable institutional sector, the pace of recovery in construction investment, and the impact of U.S. tariff imposition."
In its global economic assessment, a new reference to geopolitical risks stemming from Iran was added. The ministry said, "Volatility in global financial markets continues amid a worsening trade environment due to major countries' tariff impositions and geopolitical uncertainty, and concerns over slowing trade and growth are increasing."
The ministry added, "To broaden the recovery momentum, we will maintain an active macroeconomic policy stance and continue efforts to boost consumption, investment, and exports by institutional sector."