Economy faces continued downward pressure amid sluggish domestic demand, export slowdown
In its monthly economic assessment, the Green Book, the Ministry of Economy and Finance pointed to persistent downside risks for the sixth consecutive month, citing weak consumption, sluggish construction investment and ongoing challenges in the labor market, coupled with worsening export conditions.
"Recently, the domestic economy has seen a delayed recovery in private consumption and construction investment, while difficulties in employment persist, especially in vulnerable areas," the report said. "Export growth has slowed due to worsening external conditions triggered by US tariff impositions, maintaining overall downward pressure on the economy."
Despite adding 245,000 jobs in May -- the first time in 13 months that job additions surpassed the 200,000 mark -- the report noted ongoing employment losses in key industries, such as manufacturing and construction.
The manufacturing sector, considered a cornerstone of the South Korean economy, lost 67,000 jobs in May compared with a year earlier, marking the 11th consecutive month of decline.
The construction industry shed 106,000 jobs, continuing a downward trend for the 13th straight month.
The report also raised concerns over growing global economic risks, noting that trade conditions have deteriorated, leading to heightened volatility in international financial markets.
South Korea's exports fell 1.3 percent on-year to $57.3 billion in May, ending a three-month growth streak. The decline was largely attributed to a sharp drop in shipments to the United States, following trade measures implemented by US President Donald Trump's administration.
The ministry said it will continue to focus on measures to support the economic recovery, revitalize consumption, and assist vulnerable groups and small merchants. It also pledged full-scale efforts to mitigate the impact of global trade risks, including damage from US tariffs on South Korean companies. (Yonhap)
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