Economic Challenges Ahead for South Korea

The Ministry of Economy and Finance has recently unveiled the January edition of the "Recent Economic Trends (Green Book)", painting a concerning picture of South Korea's economic landscape. The report highlights a significant employment slowdown and increased economic pressures, signaling a shift from the previously optimistic government outlook.

Employment and Sectoral Impact

December 2024 saw a notable decrease in employment, with the number of employed individuals dropping by 52,000 compared to the previous year. This marks the first decline in nearly four years, with the manufacturing and construction sectors being the hardest hit. The unemployment rate also saw an alarming increase, reaching 1.115 million, the highest December figure in four years.

Government's Stance and Future Measures

The government has expressed its concern over the increasing downward risks, emphasizing the need to prioritize employment over inflation. With the economic situation deteriorating, the Ministry of Economy and Finance is considering additional measures to support the economy, including the possibility of an additional budget.

Consumer Behavior and Global Uncertainties

Consumer behavior has also been negatively impacted, with sales at discount stores and the number of Chinese tourists visiting Korea both declining. The global economy, while showing signs of recovery, faces increasing uncertainties due to geopolitical risks and potential changes in the trade environment.