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"Burden on people's livelihoods, including inflationary pressure due to high oil prices...Chuseok stabilization measures to be promoted"
Domestic sales of Korean passenger cars decreased by 28.3% in August...Ministry of Economy and Finance Green Book September issue published
The government continued its positive assessment of the current Korean economy, stating, "A solid economic recovery trend is continuing."
However, it expressed concern that uncertainties related to the Middle East war and US tariff measures had expanded compared to the previous month.
The Ministry of Economy and Finance stated in the September issue of 'Recent Economic Trends' (Green Book) released on the 11th, "Recently, our economy is seeing a solid economic recovery trend continue, with exports significantly increasing and domestic demand, such as consumption, showing improvement."
It maintained the positive economic assessment from the August issue, which stated, "The economic recovery trend is strengthening."
Total industrial production in July was at the same level as the previous month.
It decreased in the service industry (month-on-month -1.3%, year-on-year 3.5%) and construction industry (month-on-month -1.1%, year-on-year -3.2%), but increased in the mining and manufacturing industry (month-on-month 0.2%, year-on-year 3.6%).
Looking at the August flash indicators for the service industry, online sales increased by 12.9% compared to a year ago.
However, the average daily stock trading value was 31.8 trillion won, lower than July (43 trillion won). Vehicle fuel sales also decreased by 14.3%, the largest drop since April (-22.0%).
Looking at the expenditure sector, retail sales (month-on-month -2.4%, year-on-year -0.8%) decreased, but facility investment (month-on-month 7.5%, year-on-year 24.9%) increased.
Looking at the August flash indicators for retail sales, domestic card approvals increased by 4.9% compared to a year ago. The growth rate expanded compared to July (3.7%).
However, domestic sales of Korean passenger cars decreased by 28.3%.
Exports in August increased by 68.7% compared to a year ago, driven by increased exports of semiconductors, computers, and cosmetics.
The consumer sentiment index in August recorded 104.5, a decrease of 2.3 percentage points (p) from the previous month.
The number of employed people in August increased by 184,000, expanding the increase.
The consumer price index in the same month rose by 3.1%, a larger increase than in July (2.8%).
In the financial market in August, stock prices rose, the won/dollar exchange rate fell, and government bond yields rose.
The housing market in July was on the rise. Sale prices rose by 0.35% month-on-month, a larger increase than in June (0.33%). Jeonse (lump-sum deposit) prices rose by 0.38%, showing the same growth rate as in June.
Regarding external conditions, the government judged, "The global economy continues a moderate growth trend, but uncertainties related to the Middle East war and US tariff measures have slightly expanded." It raised the alert level for external risks compared to the August issue, which stated 'uncertainties persist.'
The government further stated, "The burden on people's livelihoods continues, including inflationary pressure due to high oil prices and difficult employment conditions for vulnerable groups and sectors."
It also announced, "To minimize the impact of the Middle East war, we will make every effort to manage the supply and demand of key items and smoothly implement major policy tasks of the Chuseok livelihood stabilization measures, such as stabilizing prices of seasonal goods."
Regarding mid-to-long-term responses, it stated, "We will accelerate the economic growth strategy for the second half of 2026 to address structural issues such as post-Middle East war strategy, rebound in potential growth rate, and polarization."
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