The Finance Ministry said that rising domestic demand is leading to increased output and investment and overall economic recovery but that overseas risk factors remain such as a possible U.S. rate hike.
 
In its latest assessment of the domestic economy on Tuesday, the ministry said that service sector output and retail sales grew for the third straight month thanks to the Korea Grand Sale promotional event and a reduction in the individual consumption tax.
 
It also noted that industrial output in September posted the steepest growth in 54 months.
 
But the ministry said that exports fell 15-point-eight percent in October year-on-year affected by the regular repairs season for petrochemical firms, among other reasons.
 
The ministry cited economic jitters in China and uncertainty surrounding a possible raise in U.S. interest rates as overseas risk factors.

It called for a thorough observation of instabilities abroad and preemptive efforts to stabilize the South Korean market against external shocks.