South Korea's KDI Maintains Economic Recovery Outlook as Exports Jump 70.9% on July 8

According to the Korea Development Institute (KDI), South Korea's economy maintained a gradual improvement trend in July, driven by robust semiconductor exports and service sector growth despite a slowdown in overall manufacturing production. The KDI, a state-run research institute, reported that exports surged 70.9% year-over-year in May, with semiconductor exports jumping 179.6% and computer products climbing 281.6%. Notably, the KDI removed references to geopolitical risks from Middle East conflict from its economic assessment, reflecting reduced uncertainties following preliminary peace negotiations between the United States and Iran initiated in mid-June.

The KDI warned that despite declining international oil prices, the lingering effects of high exchange rates could gradually slow consumer price inflation. May consumer prices rose 3.2% year-over-year, similar to the previous month's 3.1% increase.