Seoul: South Korea's government reported signs of the economy emerging from a slump in the first half of the year, driven by improved consumption and a semiconductor boom. The Ministry of Economy and Finance, in its monthly Green Book report, indicated that domestic demand improvement and the semiconductor sector's growth were key factors propelling the economy's recovery.

According to Namibia Press Agency, the ministry highlighted ongoing uncertainties such as employment difficulties, particularly among vulnerable groups, and a slow recovery in construction investment. Additionally, the impact of U.S. tariff impositions posed potential challenges. The global economy faces continued volatility and sluggishness in trade amid a worsened trade environment. The ministry vowed to enhance domestic demand and expand potential growth through projects focusing on artificial intelligence and other innovative sectors.

Despite some mixed economic indicators, there were notable positives. Retail sales saw a slight decline of 0.1 percent in September, but facility investment significantly increased by 12.7 percent. Although the consumer sentiment index decreased by 0.3 points to 109.8 in October, it remained above the long-term average of 100.

To address the slowing private consumption, the government initiated a supplementary budget plan, which included providing cash handouts to citizens starting in July. This measure aimed to stimulate economic activity. Furthermore, daily average exports experienced a robust increase of 14.0 percent in October, attributed to strong demand for semiconductors.

The labor market showed resilience as the number of jobs grew by 193,000 in October compared to the previous year, following an expansion of 312,000 jobs in September. Additionally, consumer prices rose by 2.4 percent on an annual basis in October, up from a 2.1 percent increase in the prior month, indicating inflationary pressures in the economy.