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The Ministry of Economy and Finance delivered its assessment in the latest edition of its monthly Green Book report, maintaining the positive outlook issued in August while flagging risks tied to the war in the Middle East. Exports climbed 68.7 percent in August from a year earlier according to the ministry’s figures, with semiconductor shipments providing the main impetus. Domestic consumption has shown improvement in recent months, the report added, helping to broaden the base of the recovery beyond external demand. The finance ministry vowed to shield the economy from external fallout by monitoring supply and demand for key items and stabilizing prices ahead of the Chuseok holiday that begins on September 24.
Employment data released alongside the report showed South Korea added 184,000 jobs in August compared with the same month a year earlier, the largest such gain since March when 206,000 positions were created. The unemployment rate held steady at 2 percent, the ministry reported. The employment rate for those aged 15 to 29 stood at 44.1 percent, however, slipping 1 percentage point from a year ago and marking the 28th consecutive month of decline.
Consumer prices rose 3.1 percent in August from a year earlier, accelerating from the 2.8 percent increase recorded in July, according to the Green Book. The finance ministry noted that higher oil prices linked to regional tensions have contributed to the pickup in inflation. Officials indicated they would focus on measures to ease the burden on households from elevated living costs.
Bank of Korea data from June placed first-quarter real GDP growth at 1.8 percent on a quarterly basis, the strongest expansion in more than five years and an upward revision from initial estimates. The central bank attributed that performance to robust exports of semiconductors, machinery and automobiles as well as resilient private consumption. A semiconductor supercycle has supported the trade surplus and lifted overall economic momentum through the first half of 2026, the finance ministry stated in an earlier policy document.
The government revised its full-year 2026 growth forecast upward to 3 percent in July, citing the sustained strength in outbound shipments that reached a record $102.25 billion in June. That projection exceeds estimates from the International Monetary Fund, the Organization for Economic Cooperation and Development and the Asian Development Bank. The current account surplus is expected to hit a record $290 billion for the year, the ministry added.
In its August Green Book the ministry had described the recovery as strengthening after earlier reports spoke of a solidifying trend, reflecting successive months of export growth above 60 percent. The latest assessment reaffirms that trajectory while underscoring the need for vigilance against geopolitical risks. The finance ministry said it would continue implementing its second-half economic policy plan to address structural challenges and support potential growth.
