The South Korean government has sustained its optimistic forecast for economic recovery, now for four consecutive months, attributing this trend to improvements in domestic consumption and strong semiconductor exports. In its February economic trend report, the Ministry of Finance assessed that key indicators such as private consumption and semiconductor export growth have shown a consistent positive trajectory since November of the previous year. In particular, the report noted that overall industrial production saw increases of 0.9% and 1.5% in November and December respectively, with a significant rise in credit card transactions reflecting a 4.7% year-on-year increase in January. Other indicators, such as cement shipments and capital goods imports, also displayed notable growth during the early part of February, suggesting a broad-based recovery.

Nevertheless, the government cautioned that there are persistent uncertainties on the horizon. It acknowledged ongoing challenges in employment, particularly in vulnerable sectors, and raised concerns about the speed of recovery in corporate investment amid the impact of U.S. tariffs. The report also highlighted significant risks from the global economic landscape, noting fears of trade slowdowns and volatility in international financial markets due to elevated geopolitical tensions and customs duties imposed by major economies. As such, the government plans to implement proactive macroeconomic policies to spread the momentum of recovery further across sectors.

Looking ahead, the Ministry emphasized its commitment to enhancing economic strategies aimed at promoting balanced growth and mitigating polarization by 2026. This includes efforts to bolster consumption, investment, and exports, while pushing forward with their economic growth strategy swiftly as they aim to rebound the potential growth rate and establish a foundation for significant advancements within the economy.