Job seekers examine employment information at a job fair at the aT Center in Seocho District, Seoul, Jan. 16. Yonhap
The Korean economy faces "increasing downward pressure" due to heightened uncertainties both at home and abroad, leading to weakened economic sentiment and a slowdown in employment, the finance ministry said Friday.
In its monthly economic report, the Green Book, the Ministry of Economy and Finance cited downward pressure for the second consecutive month, following President Yoon Suk Yeol's brief declaration of martial law on Dec. 3.
"Recently, our economy has faced increasing downward pressure on growth and weaker employment due to expanded uncertainties at home and abroad," the report said.
The latest assessment builds on the December report, where the ministry first highlighted downward pressure. In November, the ministry had already softened its language, shifting from "recovery" to "gradual recovery."
The finance ministry added that while the global economy is showing signs of recovery, geopolitical risks are leading to uncertainties in the trade environment.
The government is actively working to uphold Korea's credibility by fostering coordination led by economy-related ministers' meetings, the report added.
Korea shed 52,000 jobs from a year earlier in December, a sharp contrast to the 120,000 jobs added the previous month. This marked the first on-year decline in employment in three years and 10 months, according to the report.
Consumer prices, a key gauge of inflation, grew 1.9 percent from a year earlier in December, marking the fourth consecutive month that inflation remained within the 1 percent range.
In November, Korea's industrial output went down 0.4 percent from a month earlier, marking the third consecutive month of decline. Meanwhile, retail sales, a measure of private spending, grew 0.4 percent over the cited period, rebounding after two consecutive months of decline.
Facility investment saw a sharp decline in November, falling 1.6 percent from the previous month, primarily due to a slump in the machinery sector, said the report. (Yonhap)