The government has assessed that a robust recovery in the economy is continuing, driven by increased exports and improvements in domestic consumption. However, it also noted ongoing challenges related to high inflation, employment conditions in vulnerable sectors, and uncertainties stemming from the conflict in the Middle East.
The Ministry of Economy and Finance stated in its 'Recent Economic Trends for September 2026' report released on the 11th that, "Recently, our economy shows a solid recovery trend, with a significant increase in exports and improvements in domestic consumption."
Exports were led by increases in semiconductors and computers. In August, exports reached $98.26 billion, a 68.7% increase compared to the same month last year. The average daily export amount, adjusted for working days, was $4.47 billion, up 72.5%.
By category, computer exports surged by 419%, while semiconductors increased by 209%. Exports of cosmetics and secondary batteries rose by 52% and 24%, respectively. In contrast, automobile and ship exports fell by 30% and 46%, showing significant variation among categories. The trade balance for August recorded a surplus of $34.75 billion.
Domestic indicators presented mixed signals. Retail sales in July decreased by 2.4% compared to the previous month, with declines in sales of durable goods (-7.7%), semi-durable goods (-1.4%), and non-durable goods (-0.1%). Service sector production also fell by 1.3%. While mining and manufacturing production increased by 0.2%, construction output dropped by 1.1%, leaving total industrial production unchanged from the previous month. However, capital investment rose by 7.5%.
Preliminary consumer indicators for August showed both improvement and slowdown signals. Domestic card approvals, excluding utility payments, increased by 4.9% compared to the same month last year, surpassing July's growth rate of 3.7%. Conversely, domestic sales of locally produced passenger cars fell by 28.3%. The consumer sentiment index dropped to 104.5, down 2.3 points from the previous month. The Ministry of Economy and Finance identified the increase in card approvals as a positive factor for retail sales, while the decline in domestic car sales was seen as a negative factor.
Inflationary pressures also persisted. In August, consumer prices rose by 3.1% compared to the same month last year, a larger increase than July's 2.8%. The base effect from last year's temporary halving of mobile phone fees in August influenced this rise. Core inflation, excluding food and energy, increased by 3.4%, while living costs rose by 3.2%.
Prices for agricultural, livestock, and fishery products fell by 2.6%, but petroleum prices surged by 14.2%. The average monthly price of Dubai crude oil rose from $76.80 per barrel in July to $88.80 in August. The Ministry of Economy and Finance assessed that inflationary pressures continue amid heightened uncertainties due to the Middle East conflict and rising oil prices.
Employment figures showed an overall increase, but disparities among sectors were evident. In August, the number of employed individuals rose by 184,000 compared to the same month last year, exceeding July's increase of 108,000. Employment in the service sector increased by 345,000, while manufacturing and construction sectors saw declines of 38,000 and 32,000, respectively. Employment in the accommodation and food service sector also decreased by 61,000.
The government plans to strengthen supply management of key items to minimize the impact of the Middle East conflict and implement measures to stabilize prices of essential goods during the Chuseok holiday. It also aims to accelerate economic growth strategies for the second half of the year to address structural issues such as potential growth rate rebounds and polarization.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.