The South Korean economy is showing signs of getting better but the recovery remains unequal among sectors and domestic demand is weak, Finance Minister Choi Sang-mok said Friday, vowing utmost efforts to curb inflation and support the public’s livelihoods.

Choi made the remarks during an emergency economic ministers’ meeting meant to check the latest economic circumstances and seek responses.

“We’ve seen a series of data indicating an economic recovery, such as rising manufacturing production and exports. But we’ve not yet felt such warmth as the situation is widely different and uneven among sectors,” Choi said, pointing to slowing private spending and weak investment.

Choi also warned of the chance of inflation bouncing back to over 3 percent in the coming months amid geopolitical uncertainties in the Middle East and elsewhere.

Dubai crude, South Korea’s benchmark, rose to US$82.4 per barrel in January from the previous month’s $77.3, according to government data.

“The government will strive for achi
eving a 2 percent inflation level at an early date by boosting supplies of major agricultural items and implementing discount programs,” Choi said.

In January, consumer prices, a key gauge of inflation, rose 2.8 percent on-year, marking the first fall below 3 percent for the first time in six months.

An additional 10 billion won ($7.54 million) will be earmarked to ease prices of farm produce and other fresh food items ahead of the Lunar New Year holiday, he added.

The finance ministry has said that this year’s consumer prices are projected to gain 2.6 percent, though prices are likely to ease at a slower pace than earlier expected.

Source: Yonhap News Agency