S.Korea's domestic demand in doldrums despite strong exports

Source: Xinhua | 2018-10-11

South Korea's domestic demand remained in the doldrums on weak investment and the worsening labor market despite strong export, a monthly report by the state-run think tank said Wednesday.

The Korea Development Institute (KDI) said in its monthly report that domestic demand stagnated on the reduced investment and the slumping employment, though export showed a rising trend on solid demand for semiconductors.

The think tank said the daily average export in September kept a rosy picture on robust demand for chips, though the month's export reduced on less business days caused by the Chuseok holiday, the South Korean version of Thanksgiving Day.

The September export fell 8.2 percent compared with the same month of last year, but the daily average export of the month increased 8.5 percent.

The KDI said facility and construction investments maintained a downward momentum, while the overall trend of private consumption was modest though retail sales gained ground.

It noted that the unemployment rate rose in contrast to the falling employment rate, while the employment growth was insignificant.

The number of those employed rose 3,000 in August from a year earlier. Production in the services sector grew 1.6 percent in August, after expanding 2.1 percent in the previous month.