Despite a recent recovery from the lows of the pandemic, South Korea's economy is facing some downside risks because of global uncertainties and inflation.
The Korea Development Institute says the economy's been improving moderately, led by a rise in production in the semiconductor and automobile industries.
But it says the economy will face a downturn due to inflation and worsening conditions externally.
Consumer sentiment dropped significantly last month as consumer prices jumped by a record 6.3 percent.
There was also slower growth in the U.S. and China, and fears over a potential global recession.