South Korea says exports robust but weak domestic demand hampering economy

[SEOUL] Weak private consumption and tepid employment growth are holding back South Korea's economy even as exports steadily gain, the finance ministry said on Tuesday.

May retail sales declined 0.9 per cent from April while the consumer price index gained 1.9 per cent year-on-year in June, cooling from 2 per cent in July and pointing to a slower-than-expected recovery in domestic demand.

The nation's service sector output also declined 0.3 per cent in May on-month after a 0.1 per cent rise in April.

The ministry said the economy faces uncertainties from North Korean risks, soaring household debt and a lukewarm job market.

REUTERS