South Korea’s exports surpassed $700 billion for the first time in 2025, a historic milestone achieved 77 years after the founding of the government in 1948. With exports reaching $700 billion, the country became the world’s sixth-largest exporter, following the United States, Germany, China, Japan and the Netherlands. According to the Ministry of Trade, Industry and Energy and the Korea Customs Service on Dec. 29, cumulative exports for the year were provisionally tallied at $700 billion as of 1:03 p.m. that day. The photo shows stacks of containers at Pyeongtaek Port in Gyeonggi Province. (Yonhap)
SEOUL, Jan. 8 (Korea Bizwire) – South Korea’s economy is showing tentative signs of recovery, buoyed by firmer consumer spending and resilient exports, even as deepening weakness in construction continues to weigh on overall growth, a state-run research institute said Thursday.
In its latest monthly assessment, the Korea Development Institute said gains in private consumption are helping to support a modest uptick in industrial production, offsetting softness in construction and a period of adjustment in manufacturing.
Industrial output rose 0.9% in November from the previous month, led by strong semiconductor production. Exports climbed 13.4% from a year earlier in December to $69.6 billion, extending a run of monthly gains to 11, the institute said.
The KDI cautioned, however, that the strength in semiconductor exports largely reflects rising prices rather than broad-based volume growth, and that momentum in other manufacturing segments has eased. Production outside the chip sector continued to expand at a subdued pace, leaving business sentiment among manufacturers at depressed levels.
Retail sales, a barometer of consumer demand, have been volatile in recent months due in part to temporary policy effects but are showing gradual improvement overall, the institute said. Still, sales fell 3.3% in November from a year earlier, the steepest decline since February 2024.
The construction sector remains a major drag. Construction output plunged 17% in November from a year earlier, following an even steeper 24.8% drop in the previous month, underscoring persistent weakness in investment.
In the labor market, employment growth edged higher despite contractions in construction and manufacturing, supported primarily by hiring in the services sector, the report said.
Overall, the KDI said the economy is gaining modest traction, though the recovery remains uneven and heavily reliant on consumption and the semiconductor cycle.
M. H. Lee (mhlee@koreabizwire.com)
