President Moon Jae-in predicts that economic growth will accelerate in the second half of the year.

In an exclusive interview with KBS on Thursday commemorating the second anniversary of his inauguration, Moon said that the economy should recover sufficiently to meet a yearly growth target of two-point-five to two-point-six percent.

South Korea's central bank estimated last week that the economy contracted point-three percent in the first quarter, marking the worst such performance in a decade due to sluggish exports and falling investment. 

Moon said that although the figure is worrisome, the economy seems to be on the road to recovery. He added that South Korea’s economic growth rate is fairly high among both Group of 20 and Organization for Economic Cooperation and Development member states.

Acknowledging economic polarization and the sluggish job market as concerns, he stressed the need for innovative growth. He pointed to the semiconductor industry as an example, which is currently expanding its horizons towards new growth engines.

He said that the government will nurture non-memory chips, biohealth and next-generation cars as new promising sectors while solidifying the country's footing as a manufacturing powerhouse through innovation.