South Korea says consumption sluggish, govt aims to stabilise produce prices

[SEOUL] South Korea's exports and production have been improving over recent months but consumption is showing signs of sluggishness, the finance ministry said in its monthly assessment of the economy on Tuesday.

"There is a chance the economic recovery momentum may slow as improvement in consumption dulls," said the ministry in a statement after analysing the prior month's data.

The ministry said it would act pre-emptively to head off a slowdown in the economy by swiftly implementing this year's policy plans that were announced in December.

In a separate statement, the ministry said it plans to expand the supply of fresh produce and other agricultural products from existing stockpiles to prevent prices from spiking ahead of and during the Lunar New Year holiday late in January.

The ministry said it aims to have imported eggs available in retail markets before the holiday to stabilise prices as South Korea battles a shortage of eggs after its worst outbreak of bird flu.

REUTERS