President Moon Jae-in sounded an upbeat tone on the domestic economy, saying a successful rebound can be expected from the third quarter if the government and private sector work together.

Chairing his weekly meeting with top aides on Monday, President Moon noted that South Korea put up a miraculously good economic defense amid the COVID-19 pandemic, in contrast to the deep contractions logged by its OECD peers.

He noted demand in passenger flights was recovering to normal years' levels, which points to reviving domestic tourism. Domestic consumption is rebounding as well, as spectators are allowed back into stadiums for athletic matches, according Moon. It is expected to further improve in the third quarter.

President Moon singled out export decline as the biggest impediment to economic recovery, and said it is fortunate the drop has eased since July. 

The president said it will be difficult to fight the challenges right way as the pace of global recovery is slow, but promised stronger support for exporting firms.

He said the government will mobilize various policy tools to achieve a third quarter rebound, adding Korea can achieve success with the economy as it did with its COVID-19 response.