The Ministry of Strategy and Finance says the South Korean economy is facing increasing risks due to a delay in the recovery of production and investment as well as North Korea’s nuclear test, among other factors.
 
The ministry delivered the diagnosis in its latest report on recent economic trends released on Tuesday.
 
The ministry said that domestic consumption is continuing to improve. Compared to December 2014, sales of domestic passenger cars jumped 17-point-seven percent and credit card spending grew eight-point-five percent in the same month in 2015.
 
However, it analyzed that production and investment remain sluggish, explaining that production in the mining industry and investment in equipment dropped month-on-month two-point-one percent and six percent, respectively, in November last year.
   
It also cautioned against growing internal and external risks, such as those that may stem from North Korea's fourth nuclear test, a Chinese economic slowdown and lower oil prices.