By Kang Yoon-seung
SEOUL, Sept. 4 (Yonhap) — South Korea’s economy is on the brink of recovery despite some monthly fluctuations, the finance minister said Monday, with exports indicating ongoing signs of improvement.
“South Korea’s economy has lately experienced some monthly volatility, but generally speaking, it is at a gateway to recovery,” Finance Minister Choo Kyung-ho remarked during a gathering with economic-related ministers.
Although South Korea’s industrial output decreased month-on-month in July, Choo attributed the retreat to temporal factors, such as weather conditions, noting the country has been showing signs of a recovery in exports.
South Korea’s exports declined for the 11th consecutive month in August largely due to weak demand for semiconductors and petroleum products, but the country reported a trade surplus for the third consecutive month.
“In spite of the summer vacation season, exports in August narrowed its drop from a month earlier, driven by a recovery in the chip sector,” Choo stated. “Exports to China in August also recovered to the US$10-billion mark.”
Chip exports reached $8.6 billion in August, hovering above the monthly average of $6.9 billion and $7.5 billion recorded in the first and second quarter, respectively.
“In September, we anticipate the decline in exports to shrink further while maintaining a trade surplus. We forecast an expansion in outbound shipments within the fourth quarter,” Choo added.
The finance minister, however, noted South Korea should refrain from being “too optimistic,” considering uncertainties stemming from China.
The government will spare no efforts to reinforce the growth momentum in exports while revitalizing tourism to promote domestic demand, he added.
Finance Minister Choo Kyung-ho speaks during a parliamentary session held at the National Assembly in Seoul on Sept. 1, 2023. (Yonhap)
colin@yna.co.kr
(END)