South Korea's economy shows solid recovery signs amid export surge and job growth

South Korea's economy continues to show solid signs of recovery, supported by robust exports and improving domestic consumption, the finance ministry said Friday.

The Ministry of Finance and Economy offered the assessment in its monthly economic report, known as the Green Book, maintaining its positive assessment from the August report while noting that uncertainties surrounding the war in the Middle East persist.

"Recently, the South Korean economy has been showing solid signs of recovery, supported by a substantial increase in exports and improving domestic consumption," the report said.

South Korea's exports surged 68.7 percent in August from a year earlier, buoyed by strong semiconductor shipments.

"However, as uncertainties related to the war in the Middle East have widened somewhat, pressure on people's livelihoods continues amid inflation caused by high oil prices and employment difficulties faced by vulnerable groups and sectors," it added.

In August, South Korea added 184,000 jobs from a year earlier, while the unemployment rate remained unchanged at 2 percent. The increase marked the largest gain since 206,000 jobs were added on-year in March.

The employment rate for people aged 15 to 29, however, came to 44.1 percent, down 1 percentage point from a year earlier and marking the 28th consecutive month of decline.

Consumer prices rose 3.1 percent from a year earlier in August, accelerating from a 2.8 percent on-year rise in July.

The finance ministry vowed to shield the economy from the fallout of the Middle East war, including through measures to stabilize prices of key items ahead of Chuseok, the Korean equivalent of Thanksgiving, which runs from Sept. 24-27.

"The government will promptly implement the economic growth initiatives planned for the second half of 2026 to address post-war challenges, revitalize growth potential and tackle economic polarization," it said. (Yonhap)