Export and import price data from Bank of Korea. Graphic by Asia Today and translated by UPI
Feb. 13 (Asia Today) — South Korea’s government maintained its assessment for a fourth straight month that the economy is on a recovery track, citing strong semiconductor-led exports and a gradual improvement in consumption, while warning that weak employment growth and sluggish investment remain key challenges.
The Ministry of Economy and Finance said in its February “Recent Economic Trends” report that “the recovery trend appears to be continuing,” repeating wording it has used since November.
Exports rise, consumption edges up
January exports, based on customs-clearance data, rose 33.9% from a year earlier, the report said. Average daily exports increased 14.0%. Semiconductor shipments more than doubled, up 103%, while computers, wireless communications devices and automobiles also posted gains.
South Korea recorded a trade surplus of $8.74 billion, or about 12.6 trillion won ($8.7 billion), extending the surplus streak to 12 consecutive months, the report said.
The ministry cautioned that export growth remains concentrated in a limited number of items, including semiconductors, leaving the trend vulnerable to shifts in the global technology cycle and changes in U.S. trade policy.
On the domestic side, December retail sales rose 0.9% from the previous month. Fourth-quarter private consumption, based on preliminary gross domestic product data, rose 0.3% from the prior quarter.
The consumer sentiment index came in at 110.8 in January, above the 100 baseline, up 1.0 point from the previous month. Domestic credit card approvals rose 4.7% from a year earlier in January, supporting signs of a modest pickup in spending.
Hiring slows, capital spending stays weak
Employment growth slowed in January, with the number of employed people rising 108,000 from a year earlier, down from a 168,000 increase in the previous month. The unemployment rate rose 0.4 percentage points to 4.1%.
Jobs growth was led by sectors such as health and social welfare and transportation and warehousing, while hiring difficulties persisted in weaker areas such as construction, the report said.
Investment indicators remained mixed. Facility investment fell 3.6% in December from the previous month, dragged down by reduced spending on transportation equipment. Facility investment also fell 1.8% in the fourth quarter from the prior quarter, though some leading indicators, including machinery orders, improved.
Construction output rose 12.1% in December from the prior month, but construction investment fell 3.9% for the fourth quarter. A decline in building permit area was cited as a potential headwind.
Inflation cools to 2.0%
Consumer inflation rose 2.0% in January from a year earlier, easing from 2.3% in the prior month, the report said. Core inflation, excluding food and energy, also rose 2.0%.
The ministry said it will continue macroeconomic support and efforts to boost consumption, investment and exports, while monitoring risks including tougher tariff conditions among major economies and geopolitical uncertainty.
— Reported by Asia Today; translated by UPI
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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260213010004994