The government has projected that the economic recovery is gaining momentum, supported by strong exports and a rebound in domestic consumption. However, it also noted that uncertainties regarding prices and employment persist due to the impact of the ongoing conflict in the Middle East, which has led to fluctuations in international oil prices and exchange rates.
The Ministry of Economy and Finance stated in its July report on recent economic trends that "the growth of our economy has significantly expanded in the first quarter, and the recovery trend is solidifying." It added that the burdens on livelihoods, such as rising prices and slowing employment due to the Middle East conflict, continue to be a concern.
Exports surpassed $100 billion for the first time in a month, reaching $102.25 billion in June, a 70.9% increase compared to the same month last year. The growth was driven by increases in semiconductor, computer, shipbuilding, and automobile exports.
In May, the current account recorded a surplus of $38.61 billion, with the service account shifting to a surplus in travel and intellectual property royalties, reducing the deficit.
Conversely, rising international oil prices and increased exchange rate volatility due to heightened tensions in the Middle East have been identified as factors contributing to inflationary pressures. The consumer price index rose by 3.2% in June, marking the second consecutive month above 3%, likely influenced by rising prices of agricultural, livestock, and fishery products, as well as high oil prices.
The won-dollar exchange rate rose to 1,549.4 won by the end of June, an increase of 2.7% from the end of the previous month.
Employment figures showed a rebound after a month of decline, with the number of employed persons in June reaching 29.154 million, an increase of 63,000 from the previous year. This contrasts with a decrease of 40,000 in May, which marked the first decline in 17 months. However, the employment rate stood at 63.4%, down 0.2 percentage points from the same month last year.
The financial market showed gains due to a semiconductor boom and expectations for peace between the U.S. and Iran, but foreign selling pressure led to a stable close. The KOSPI index ended at 8,476.48, up 0.33 points from the previous month, while the KOSDAQ index fell to 916.18, down 158.62 points.
Production showed some signs of slowing, with total industrial production declining by 0.3% in May due to decreases in manufacturing (-3.0%) and public administration (-2.8%). However, the leading composite index's cyclical component rose by 0.7 points, reflecting expectations for future economic improvement.
The government assessed that while strong exports continue, domestic consumption, which had been dampened by the Middle East conflict, is gradually recovering. However, it acknowledged that fluctuations in international oil prices and exchange rates could pose challenges for prices and employment, and it plans to focus policy efforts on stabilizing livelihoods.
The Ministry of Economy and Finance stated, "The global economy continues to show moderate growth, but concerns about rising prices and slowing growth in major countries persist due to the impact of the Middle East conflict. Uncertainties in international financial markets and energy prices remain. We will accelerate the implementation of the economic growth strategy for the second half of 2026 to address structural issues such as strategy, potential growth rebound, and polarization following the Middle East conflict."
The Ministry of Economy and Finance stated in its July report on recent economic trends that "the growth of our economy has significantly expanded in the first quarter, and the recovery trend is solidifying." It added that the burdens on livelihoods, such as rising prices and slowing employment due to the Middle East conflict, continue to be a concern.
Exports surpassed $100 billion for the first time in a month, reaching $102.25 billion in June, a 70.9% increase compared to the same month last year. The growth was driven by increases in semiconductor, computer, shipbuilding, and automobile exports.
In May, the current account recorded a surplus of $38.61 billion, with the service account shifting to a surplus in travel and intellectual property royalties, reducing the deficit.
Conversely, rising international oil prices and increased exchange rate volatility due to heightened tensions in the Middle East have been identified as factors contributing to inflationary pressures. The consumer price index rose by 3.2% in June, marking the second consecutive month above 3%, likely influenced by rising prices of agricultural, livestock, and fishery products, as well as high oil prices.
The won-dollar exchange rate rose to 1,549.4 won by the end of June, an increase of 2.7% from the end of the previous month.
Employment figures showed a rebound after a month of decline, with the number of employed persons in June reaching 29.154 million, an increase of 63,000 from the previous year. This contrasts with a decrease of 40,000 in May, which marked the first decline in 17 months. However, the employment rate stood at 63.4%, down 0.2 percentage points from the same month last year.
The financial market showed gains due to a semiconductor boom and expectations for peace between the U.S. and Iran, but foreign selling pressure led to a stable close. The KOSPI index ended at 8,476.48, up 0.33 points from the previous month, while the KOSDAQ index fell to 916.18, down 158.62 points.
Production showed some signs of slowing, with total industrial production declining by 0.3% in May due to decreases in manufacturing (-3.0%) and public administration (-2.8%). However, the leading composite index's cyclical component rose by 0.7 points, reflecting expectations for future economic improvement.
The government assessed that while strong exports continue, domestic consumption, which had been dampened by the Middle East conflict, is gradually recovering. However, it acknowledged that fluctuations in international oil prices and exchange rates could pose challenges for prices and employment, and it plans to focus policy efforts on stabilizing livelihoods.
The Ministry of Economy and Finance stated, "The global economy continues to show moderate growth, but concerns about rising prices and slowing growth in major countries persist due to the impact of the Middle East conflict. Uncertainties in international financial markets and energy prices remain. We will accelerate the implementation of the economic growth strategy for the second half of 2026 to address structural issues such as strategy, potential growth rebound, and polarization following the Middle East conflict."
* This article has been translated by AI.
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