Export Growth Shadows by High Tariffs
Despite signs of improvement in private consumption and steady progress in semiconductor exports, South Korea's export prospects are under threat due to high tariffs stemming from trade friction with the United States, according to a recent report by the Korea Development Institute (KDI).

Construction Industry Slump Continues
The construction industry's significant decline, with a -12.3% production drop in June, highlights ongoing challenges. Construction investment saw steep declines in the first and second quarters, despite some recovery in construction orders and commencement areas.
Semiconductor Exports: A Temporary Boost?
July's export growth, fueled by semiconductors and ships, may be short-lived due to preemptive shipments ahead of U.S. tariff increases. Excluding these sectors, daily exports have consistently declined.
Consumption Shows Signs of Recovery
Consumer sentiment and retail sales, buoyed by tax reductions and consumption coupons, are improving. However, service sectors like accommodation and food services continue to struggle.
Employment Market and Inflation Trends
The employment market remains weak, with notable job losses in manufacturing and construction. Meanwhile, inflation rates remain stable, but the impact of consumption coupons on demand-side prices warrants close monitoring.
Comments