S. Korea's economy faces 'increasing' downward pressure on weak exports, sluggish consumption: ministry

It marks the fifth consecutive month the Ministry of Economy and Finance has made such an assessment in its monthly economic report, the Green Book.

"The economy is facing growing downward pressure, as the recovery in domestic demand remains sluggish and job market difficulties persist, particularly in vulnerable sectors. External conditions have worsen due to U.S. tariff policies, leading to a slowdown in exports," the ministry said.

It marked the first time that the ministry pointed to slowing exports, reflecting concerns over an exacerbating global trade environment fueled by U.S. tariffs on steel, automobile and other imports.

Exports rose 3.7 percent in April from a year earlier, marking a third consecutive monthly increase. But average daily exports fell by 0.7 percent.

"The impact of U.S. tariff impositions has already materialized. Given the continued downward pressure, the annual growth rate is expected to fall below our initial projection," a ministry official told a press briefing.

The ministry had forecast 1.8 percent growth for the Korean economy in its economic policy outlook.

The report said South Korea saw an increase in production, driven by the semiconductor industry, in March, while consumption and investment decreased at the same time.

The country added 194,000 jobs from a year earlier in April but saw a sharp drop in quality jobs in the manufacturing and construction sectors.

Consumer prices increased 2.1 percent on-year last month due to an increase in prices of agro-fisheries products.

"The government will swiftly execute the 13.8 trillion-won (US$9.9 billion) extra budget to support export companies and boost the industrial competitiveness, and also help efforts to restore the domestic economy," the ministry said.

As reported previously, two-thirds of South Korean manufacturers view the country's carbon neutrality policy as a regulatory burden, according to a poll.