S. Korea's economic recovery remains solid, led by exports: finance ministry

South Korea's economy continues to demonstrate a robust recovery, with exports playing a key role, according to the finance ministry's latest evaluation. The Ministry of Finance and Economy included this assessment in its monthly economic report, known as the Green Book. The report maintains its positive outlook from the previous August assessment, but acknowledges ongoing uncertainties stemming from the war in the Middle East.

In August, South Korean exports saw a significant surge of 68.7 percent compared to the same period last year, driven by a boom in semiconductor shipments. Despite this strong performance, the report highlights that the war's uncertainties are causing pressure on household finances due to high oil prices and employment challenges for vulnerable groups and sectors.

The economy added 184,000 jobs in August compared to a year ago, marking the largest gain since 206,000 jobs were added in March. This job growth signals a healthy labor market, with the unemployment rate remaining steady at 2 percent. However, the report notes that the employment rate for individuals aged 15 to 29 dropped to 44.1 percent, a 1 percentage point decline from the previous year, indicating a 28th consecutive month of decreasing employment for this age group.

Consumer prices increased by 3.1 percent in August compared to the same month last year, indicating accelerating inflation. This rise in prices is primarily attributed to high oil costs, which the finance ministry aims to mitigate through price stabilization measures for essential goods ahead of the Chuseok holiday, which falls between September 24-27.

The government is committed to implementing economic growth initiatives in the second half of 2026 to address post-war challenges, revitalize growth potential, and reduce economic polarization.