Tourism has also been affected, with Chinese tourist arrivals dropping to 262,000 in December 2024, down from 373,000 the previous month, marking two consecutive months of decline.

The Ministry has stressed the need to focus on employment issues rather than inflation, given the negative trends in job growth.

Consumer sales at discount stores also fell by 3% in December 2024, marking a return to negative growth for the first time in three months.

The Ministry of Economy and Finance highlighted these issues in the January 2025 issue of the "Recent Economic Trends (Green Book)", released on January 17, which pointed out a slowdown in employment and increasing downward pressure on the economy.

Reflecting this dire economic assessment, the government's tone has shifted to emphasize "increased downward pressure" rather than previous concerns about risks.

In response to the growing economic pressures, there are calls for an additional budget to support the economy, with the Ministry considering further measures if necessary.

The manufacturing sector was particularly hard hit, losing 97,000 jobs, while the construction sector saw an even larger decline with 157,000 jobs lost.

Unemployment rose significantly, reaching 1.115 million in December 2024, which is an increase of 171,000 from the previous year and the highest December figure in four years.

In December 2024, the South Korean government removed the term "economic recovery" from its assessment for the first time in over a year, signaling a shift towards a more negative outlook on the economy.

The labor market faced additional challenges, as South Korea experienced a decline of 52,000 employed individuals in December 2024, marking the first drop in employment in nearly four years.

Business sentiment has deteriorated, with the industry business sentiment index decreasing by 4.5 points to 87 in December 2024, indicating a pessimistic business environment.

Despite a general recovery trend observed globally, uncertainties are rising due to potential changes in the trade environment amid ongoing geopolitical risks.