The Korea Times

Economy continues 'gradual improvement' on strong chip exports: KDI

The Korean economy continued to improve gradually, supported by semiconductor-led strong exports, amid lingering uncertainties stemming from the Middle East, a state-run think tank said Monday. "Despite the downside risks to the economy posed by the war in the Middle East, the Korean economy has continued to show gradual improvement, driven primarily by the semiconductor boom," the Korea Development Institute (KDI) said in its monthly economic assessment. The KDI used the phrase "gradual improvement" this month rather than last month's assessment of "signs of recovery," citing concerns that adverse effects from the Middle East war are spilling over into other sectors of the economy. Korea's exports surged 53 percent in May from a year earlier, extending their strong momentum amid the semiconductor supercycle. Industrial output gained 2.4 percent in April from a year earlier. Output in the mining and manufacturing sector, a key pillar of the economy, increased 1.5 percent on-year supported by a 13 percent rise in the semiconductor sector. Retail sales increased 1.6 percent on-year in April,