The South Korean economy is currently facing downside risks. It’s because the American Federal Reserve is all geared up towards raising interest rates, while Korea is busy with overhauling its shipping as well as shipbuilding industries, as the finance ministry reported on Thursday.
The ministry stressed in its monthly assessment of the South Korean economy that growth could be constrained by extensive strikes at carmakers.
Here we should stress that unionized workers at South Korea's Hyundai Motor officially rejected a tentative wage deal the previous month, thus signaling more strikes as well as production losses at its biggest manufacturing base.
August export data revealed that early this month shipments would have performed much better had it not been for the car strikes.
Apart from that the ministry statement told domestic consumption was adjusting to the expiry of some positive government measures, including tax breaks.