The South Korean economy stayed on a modest recovery path in June as strong semiconductor exports offset a slowdown in manufacturing, a state-run think tank said.
The Korea Development Institute said Wednesday that gains from the chip industry helped sustain overall growth despite softer manufacturing output. Exports reached a record $102.25 billion in June, up 70.9 percent from a year earlier, with semiconductor shipments nearly tripling to $44.82 billion.
The think tank noted that AI-related demand kept export values high even as volume growth eased. It added that uncertainties over the U.S.-Iran conflict have eased since mid-June, though high oil prices and a weaker won could still push inflation higher.
Consumer prices rose 3.2 percent in June, the fastest pace since December 2023. The KDI warned this may increase the chance of further interest rate hikes that could slow consumption recovery.
