South Korean think tank: Strong semiconductor exports drive growth, expanding South Korea's economic improvement.

The Korea Development Institute (KDI) said in its monthly economic assessment report on Monday that South Korea’s economy is showing broader signs of improvement, driven by semiconductor-related sectors. The institute added that exports and facility investment continue to post strong growth, fueled by the semiconductor industry, while durable goods consumption has accelerated overall consumer spending. It also noted that overall industrial production has recorded robust growth, supported by steady growth in the services sector and a rebound in manufacturing. However, the KDI pointed out that South Korea, Asia’s fourth-largest economy, still faces uncertainties including U.S. tariff policies and ongoing geopolitical instability in the Middle East. The think tank also emphasized that South Korea remains at a high inflation level, and a deteriorating employment situation is posing challenges to the economy. (Jinshi)