The state-run Korea Development Institute (KDI) has maintained its assessment that the nation is seeing signs of an easing of an economic downturn on the back of a recovery in exports despite weak domestic demand.

The KDI said in a monthly economic assessment report on Sunday that the Korean economy is exhibiting signs of a moderation of sluggishness, driven by a recovery in exports, although domestic consumption remained weak.

The KDI maintained the assessment that the economic sluggishness has been easing for six straight months since October last year.

The KDI said that the economic recovery was driven by a quick increase in exports and a sharp rise in output in the semiconductor industry.

In January, mining and manufacturing production jumped 12-point-nine percent from a year earlier, with the output of semiconductors soaring 44-point-one percent.

However, retail sales, a key indicator of consumption levels, slipped three-point-four percent in January from a year ago.

The inflation rate climbed back above three percent to reach three-point-one percent in February due to a rise in the prices of agricultural and petroleum products.