recovery

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

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260213010004994

The Los Angeles City Council on Tuesday signed off on a plan to give financial relief to Palisades fire victims who are seeking to rebuild, endorsing it nearly 10 months after Mayor Karen Bass first announced it.

On a 15-0 vote, the council instructed the city’s lawyers to draft an ordinance that would spare the owners of homes, duplexes, condominium units, apartment complexes and commercial buildings from having to pay the permit fees that are typically charged by the Department of Building and Safety during the recovery.

Forfeiting those fees is expected to cost as much as $90 million over three years, according to Matt Szabo, the city’s top budget analyst.

The vote came at a time of heightened anxiety over the pace of the city’s decisions on the recovery among fire victims. Bart Young, whose home was destroyed in the fire, told council members his insurance company will cover only half the cost of rebuilding.

“I’m living on Social Security. I’ve lost everything,” he said. “I’m not asking for special treatment. I’m asking for something fair and with some compassion.”

The ordinance must come back for another council vote later this year. Councilmember Traci Park, who pushed for the financial relief, described the vote as a “meaningful step forward in the recovery process.”

“Waiving these fees isn’t the end of a long road, but it removes a real barrier for families trying to rebuild — and it brings us closer to getting people home,” she said in a statement.

Bass announced her support for the permit fee waivers in April as part of her State of the City address. Soon afterward, she signed a pair of emergency orders instructing city building officials to suspend those fees while the council works out the details of a new permit relief program.

That effort stalled, with some on the council saying they feared the relief program would pull funding away from core city services. In October, the council’s budget committee took steps to scale back the relief program.

That move sparked outrage among Palisades fire victims, who demanded that the council reverse course. Last month, Szabo reworked the numbers, concluding that the city was financially capable of covering all types of buildings, not just single-family homes and duplexes.

Fire victims have spent several months voicing frustration over the pace of the recovery and the city’s role in that effort.

Last week, the council declined to put a measure on the June 2 ballot that would spare fire victims from paying the city’s so-called mansion tax — which is levied on property sales of $5.3 million and up — if they choose to put their burned-out properties on the market.

Bass and other elected officials have not released a package of consulting reports on the recovery that were due to the city in mid-November from AECOM, the global engineering firm.

AECOM is on track to receive $5 million to produce reports on the rebuilding of city infrastructure, fire protection and traffic management during the recovery. The council voted in December to instruct city agencies to produce those reports within 30 days.

Bass spokesperson Paige Sterling said the AECOM reports are being reviewed by the city attorney’s office and will be released by the end of next week. The mayor, for her part, said Monday that the city has “expedited the entire rebuilding process without compromising safety.”

More than 480 rebuilding projects are currently under construction in the Palisades, out of about 5,600, the mayor’s team said. Permits have been issued for more than 800 separate addresses, according to the city’s online tracker.

The council’s vote coincides with growing antagonism between the Trump administration and state and local elected officials over the recovery.

Last week, President Trump signed an executive order saying wildfire victims should not have to deal with “unnecessary, duplicative, or obstructive” permitting requirements when rebuilding their homes. On Tuesday, the county supervisors authorized their lawyers to take legal action to block the order if necessary.

Lee Zeldin, Trump’s administrator for the federal Environmental Protection Agency, is scheduled to meet Wednesday with Bass and LA. County Supervisor Kathryn Barger in Pacific Palisades to discuss the pace of the recovery. He is also set to hold a news conference with Palisades residents to discuss the roadblocks they are facing in the rebuilding effort.