South Korea is faced with growing economic uncertainties at home and abroad stemming from the U.S. presidential election, Brexit and a delay in the recovery of optimistic sentiments among households and businesses.
 
According to the Finance Ministry's monthly Green Book for November released on Tuesday, domestic consumption and investment are subdued with Samsung's Galaxy Note 7 fiasco and the disappearance of seasonal factors such as a record heat wave in the summer. It added that production also remains sluggish.
 
The economic trend report said retail sales dropped four-point-five percent in September compared to the previous month for temporary reasons, such as the Galaxy Note 7 recall and higher prices of produce during the Chuseok holiday. The fall was particularly conspicuous in the home appliance, mobile phone, and food and beverage sectors.
 
Investment in equipment fell by two-point-one percent in September, a reversal from a jump of 13-point-four percent in August when massive semiconductor facilities were introduced. Investment in construction dwindled four-point-seven percent, after posting a growth for four straight months.
 
A ministry official said that in order to vitalize the economy, the government will implement additional financial reinforcement measures and make greater efforts to stimulate consumption, investment and exports in the private sector.