South Korea's Ministry of Economy and Finance published its latest Recent Economic Trends report, assessing that expanding exports and investment continued to support growth while consumption improved more gradually. Risks remained concentrated in uncertainty surrounding the Middle East war, inflation pressures from high oil prices and difficult employment conditions among vulnerable groups and sectors.
October exports increased 93.7% from a year earlier to USD 115.28 billion, supported by semiconductors, computers and cosmetics. The trade surplus reached USD 42.5 billion. In September, total industry production rose 3.0% from the previous month and equipment investment increased 5.3%. Consumption indicators were mixed. Retail sales rebounded 3.6% that month but remained 0.4% below their level a year earlier, while private consumption declined 0.2% in the third quarter from the preceding quarter.
Consumer price inflation eased to 2.8% in October from 2.9% in September, as agricultural prices fell, but petroleum product prices remained 14.9% above a year earlier. Core inflation excluding food and energy held at 2.8%. The annual employment gain widened to 139,000 from 113,000 in September, and the unemployment rate stood at 2.0%. However, manufacturing employment returned to decline and construction continued to shed jobs.