The Department of Finance and Economy identified the South Korean economy as "a continued recovery pattern exists, yet worries remain regarding the impact on citizens' living standards, including increasing costs."
In the June edition of "Recent Economic Trends" (the Green Book), released on the 12th, the Ministry of Finance and Economy noted that "in recent times, the South Korean economy has maintained an upward trajectory driven by robust exports, enhanced consumer activity, and better business confidence. However, persistent uncertainties stemming from the conflict in the Middle East have raised worries regarding impacts on daily life, including increasing costs and declining job growth."
The Ministry of Finance and Economy noted for three consecutive months, starting with the March to May reports, that "downward risks to the economy caused by the Middle East conflict remain," yet this instance excluded the phrase "downside risks." This change seems to indicate an environment where key domestic and global organizations, such as the Korea Development Institute (KDI) and the Organization for Economic Cooperation and Development (OECD), have repeatedly increased their predictions for annual economic growth.
With regard to livelihood metrics like pricing and job availability, the effects of the conflict in the Middle East are increasingly evident. The Consumer Price Index for May increased by 3.1% when measured against the same period in the prior year, showing an expansion from the earlier monthly rise of 2.6%. Labor market data, which typically lags behind other economic signs, has also indicated a deceleration. In May, the total number of people employed reached 29,160,000—a reduction of 40,000 compared to the corresponding figure from the previous year. This marks the initial decline in employment levels since December 2024, representing a span of one year and five months.
In April, total industrial output fell by 0.6%, machinery investments dropped by 3.6%, and retail sales also declined by 3.6%.
The administration believes that a favorable trend focused on spending and exports remains ongoing. In May, the consumer confidence index increased by 6.9 points compared to the prior month, reaching 106.1, which exceeded the threshold of 100. During the same period, approval rates for department store credit cards climbed by 17.1%, maintaining a double-digit growth pace.
Export figures also reflected strong expansion driven by semiconductor products. In May, overall exports rose by 53.2% when measured against the previous year’s corresponding period, with notable gains observed in computer equipment (290.7%) and semiconductors (169.4%).