Despite improving economic indicators, South Korea's Finance Ministry is maintaining a wait-and-see attitude due to uncertainties over domestic demand amid the fourth wave of the pandemic.
"With robust exports, South Korea recovered in terms of employment despite the resurgence of the virus. But domestic demand for in-person services is still uncertain."
The country's exports have been maintaining an upward trend throughout 2021.
According to the ministry's monthly economic assessment, exports jumped almost 35 percent on-year in August to some 53.2 billion U.S. dollars,marking the 10th consecutive month of growth.
This was also the biggest on-year increase for any month of August.
The job market last month also remained strong adding some 518-thousand jobs from a year ago, although the pace of growth slowed due to the spread of COVID-19.
But, with the toughest distancing rules still in place across the capital area, retail sales for July dipped point-6 percent.
The ministry assessed that falling consumer confidence could further erode that figure.
The consumer sentiment index in August dropped point-7 points to 1-hundred-2.5.
With the lingering uncertainties, the South Korean government has pledged to boost the recovery through measures such as providing COVID-19 relief funds, and keeping close tabs on inflation.
Kim Sung-min, Arirang News.