Gov't says economy on recovery path, warns of Middle East risks | Yonhap News Agency

## Summary
OK By Kim Han-joo SEOUL, March 20 (Yonhap) -- South Korea's economy remains on a recovery path, but downside risks are increasing due to the situation in the Middle East, the finance ministry said Friday. The Ministry of Finance and Economy made the assessment in its monthly economic report, known as the Green Book, marking the fifth consecutive month it has used the term "recovery" to describe the economy. "Recently, our economy has continued its recovery trend, supported by improving domestic demand, including consumption and strong exports led by semiconductors," the report said. A traditional market is packed with people shopping for groceries, in this file photo from Feb. 8, 2026. (Yonhap) khj@yna.co.kr (END) Related Articles Economic recovery continues despite uncertainties: finance ministry Economic recovery continues despite uncertainties: finance ministry Economy recovering from H1 downturn despite uncertainties: finance ministry (LEAD) Retail fuel prices drop at slower-than-expected pace after price cap system introduction: ministry Keywords #Green Book Articles with issue keywords Most Liked Four decades of Damien Hirst on display at MMCA, from shark to cherry blossoms (LEAD) FM Cho sidesteps questions on whether U.S. asked Seoul to send warships to Middle East 16th Gwangju Biennale: You must change your life Ex-U.S. officials voice concerns about Trump gov't 'vacating' deterrence assets from Indo-Pacific amid Iran war Korean Pavilion at Venice Biennale seeks comfort through art, with Han Kang's sculpture of blackened trees Most Saved (LEAD) FM Cho sidesteps questions on whether U.S. asked Seoul to send warships to Middle East Four decades of Damien Hirst on display at MMCA, from shark to cherry blossoms 16th Gwangju Biennale: You must change your life Korean Pavilion at Venice Biennale seeks comfort through art, with Han Kang's sculpture of blackened trees (2nd LD) N. Korea to export 16 homegrown KF-21 fighter jets to Indonesia: sources Downtown Seoul to enter security lockdown for massive crowd at BTS concert Most Viewed More Most Viewed Photos N.K. stamps on ruling party's 9th congress Samsung chairman meets AMD CEO Preparations for BTS' Gwanghwamun concert Preparations for BTS' Gwanghwamun concert prev Gov't says economy on recovery path, warns of Middle East risks Next Gov't says economy on recovery path, warns of Middle East risks

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By Kim Han-joo
SEOUL, March 20 (Yonhap) -- South Korea's economy remains on a recovery path, but downside risks are increasing due to the situation in the Middle East, the finance ministry said Friday.
The Ministry of Finance and Economy made the assessment in its monthly economic report, known as the Green Book, marking the fifth consecutive month it has used the term "recovery" to describe the economy.
"Recently, our economy has continued its recovery trend, supported by improving domestic demand, including consumption and strong exports led by semiconductors," the report said.
Still, uncertainties remain, the ministry noted, citing ongoing employment difficulties in vulnerable sectors such as construction.
The report also warned of geopolitical risks, including rising global oil prices driven by developments in the Middle East.
It, however, added that recent economic indicators have yet to fully reflect the impact of the Middle East situation.
In January, retail sales rose 2.3 percent from the previous month, with gains across durable, semi-durable and non-durable goods.
For February, retail sales are expected to see further support from a faster increase in domestic credit card spending and improving consumer sentiment.
Exports, led by semiconductors, continued their upward trend.
In February, outbound shipments increased 28.7 percent from a year earlier, while average daily exports, adjusted for working days, surged 49 percent.
Looking ahead, the government said it will swiftly draw up a supplementary budget to support livelihoods and economic recovery while minimize the impact of the Middle East situation.
It added that a joint emergency response team will monitor all sectors around the clock and respond promptly to any signs of instability.
A traditional market is packed with people shopping for groceries, in this file photo from Feb. 8, 2026. (Yonhap)
khj@yna.co.kr
(END)
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Gov't says economy on recovery path, warns of Middle East risks

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## Expert Analysis

### Merits
- The Ministry of Finance and Economy made the assessment in its monthly economic report, known as the Green Book, marking the fifth consecutive month it has used the term "recovery" to describe the economy. "Recently, our economy has continued its recovery trend, supported by improving domestic demand, including consumption and strong exports led by semiconductors," the report said.
- Korea committed to expanding nuclear, missile programs; poses 'significant' threats to S.

### Areas for Consideration
- A traditional market is packed with people shopping for groceries, in this file photo from Feb. 8, 2026. (Yonhap) khj@yna.co.kr (END) Related Articles Economic recovery continues despite uncertainties: finance ministry Economic recovery continues despite uncertainties: finance ministry Economy recovering from H1 downturn despite uncertainties: finance ministry (LEAD) Retail fuel prices drop at slower-than-expected pace after price cap system introduction: ministry Keywords #Green Book Articles with issue keywords Most Liked Four decades of Damien Hirst on display at MMCA, from shark to cherry blossoms (LEAD) FM Cho sidesteps questions on whether U.S. asked Seoul to send warships to Middle East 16th Gwangju Biennale: You must change your life Ex-U.S. officials voice concerns about Trump gov't 'vacating' deterrence assets from Indo-Pacific amid Iran war Korean Pavilion at Venice Biennale seeks comfort through art, with Han Kang's sculpture of blackened trees Most Saved (LEAD) FM Cho sidesteps questions on whether U.S. asked Seoul to send warships to Middle East Four decades of Damien Hirst on display at MMCA, from shark to cherry blossoms 16th Gwangju Biennale: You must change your life Korean Pavilion at Venice Biennale seeks comfort through art, with Han Kang's sculpture of blackened trees (2nd LD) N.

### Implications
- It, however, added that recent economic indicators have yet to fully reflect the impact of the Middle East situation.
- Looking ahead, the government said it will swiftly draw up a supplementary budget to support livelihoods and economic recovery while minimize the impact of the Middle East situation.
- It added that a joint emergency response team will monitor all sectors around the clock and respond promptly to any signs of instability.
- A traditional market is packed with people shopping for groceries, in this file photo from Feb. 8, 2026. (Yonhap) khj@yna.co.kr (END) Related Articles Economic recovery continues despite uncertainties: finance ministry Economic recovery continues despite uncertainties: finance ministry Economy recovering from H1 downturn despite uncertainties: finance ministry (LEAD) Retail fuel prices drop at slower-than-expected pace after price cap system introduction: ministry Keywords #Green Book Articles with issue keywords Most Liked Four decades of Damien Hirst on display at MMCA, from shark to cherry blossoms (LEAD) FM Cho sidesteps questions on whether U.S. asked Seoul to send warships to Middle East 16th Gwangju Biennale: You must change your life Ex-U.S. officials voice concerns about Trump gov't 'vacating' deterrence assets from Indo-Pacific amid Iran war Korean Pavilion at Venice Biennale seeks comfort through art, with Han Kang's sculpture of blackened trees Most Saved (LEAD) FM Cho sidesteps questions on whether U.S. asked Seoul to send warships to Middle East Four decades of Damien Hirst on display at MMCA, from shark to cherry blossoms 16th Gwangju Biennale: You must change your life Korean Pavilion at Venice Biennale seeks comfort through art, with Han Kang's sculpture of blackened trees (2nd LD) N.

### Expert Commentary
This article covers recovery, middle, east topics. Notable strengths include discussion of recovery. Areas of concern are also raised. Readability: Flesch-Kincaid grade 0.0. Word count: 622.