Global uncertainties are a key risk for South Korea, as demand for memory chips may face a correction and competition among export-reliant economies is intensifying, the ministry said. It also pointed to ongoing concerns about capital outflows to the US and the country’s political situation.
South Korea cut its economic growth forecast for this year, reflecting the fallout from impeached President Yoon Suk Yeol’s martial law debacle and risks on the trade-reliant nation from Donald Trump’s tariff plans.
The Finance Ministry now sees the economy growing 1.8% in 2025 after expanding 2.1% last year, it said in a statement Thursday. Those projections are down from July’s forecasts of 2.2% and 2.6%, respectively, and underscore the pressure from weaker private consumption and easing export momentum.
