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"Burden on people's livelihoods due to rising prices from 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's Green Book September issue published
The government continued its positive assessment of the current Korean economy, stating, "A robust economic recovery trend is continuing."
However, it expressed concern that uncertainties related to the Middle East war and US tariff imposition measures have expanded compared to last 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 showing a robust economic recovery trend, with exports increasing significantly 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.
While there was a decrease in service industries (down 1.3% month-on-month, up 3.5% year-on-year) and construction (down 1.1% month-on-month, down 3.2% year-on-year), there was an increase in mining and manufacturing (up 0.2% month-on-month, up 3.6% year-on-year).
Looking at the quick indicators for the service industry in August, online sales increased by 12.9% compared to a year ago.
However, the average daily stock trading volume 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%).
In terms of expenditure, retail sales decreased (down 2.4% month-on-month, down 0.8% year-on-year), but facility investment increased (up 7.5% month-on-month, up 24.9% year-on-year).
Looking at the quick indicators for retail sales in August, 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 persons in August increased by 184,000, with the increase accelerating.
In the same month, the consumer price index rose by 3.1%, a larger increase than in July (2.8%).
In the financial markets in August, stock prices rose, the won/dollar exchange rate fell, and government bond yields rose.
The housing market was on an upward trend in July. Housing sales 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 moderate growth, but uncertainties related to the Middle East war and US tariff imposition 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 thoroughly manage the supply and demand of key items and consistently implement major policy tasks of the Chuseok livelihood stabilization measures, such as stabilizing prices of seasonal goods."
Regarding medium-to-long-term responses, it stated, "We will vigorously pursue the economic growth strategy for the second half of 2026 to respond to structural issues such as post-Middle East war strategy, rebound in potential growth rate, and polarization."
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