The Korea Development Institute(KDI) says that although South Korea is enjoying a steady growth in exports, overall expansion is slowing down due to a weakening growth in domestic demand.

In its July assessment report Tuesday, the state-run think tank said exports of semiconductors, petrochemicals and petroleum goods continue to post strong growth, though exports saw a decline in June due to fewer working days.
 
The retail sales growth rate and consumer sentiment index, however, were stalled and service sector production remained stagnant, a sign that improvement in consumption is slowing gradually.
 
The report added that overall improvements in production are further slowing down and that in the labor market, growth in the number of people with jobs has remained sluggish.