S. Korea faces external uncertainties amid volatile data: report

The South Korean economy is facing external uncertainties, including the U.S. Federal Reserve's interest rate hike, amid volatile economic data indicating a weak recovery, a government report showed Tuesday.

"Positive signs of domestic demand recovery are growing, but major economic data showed big volatility hinting at recovery not being solid yet," the Finance Ministry said in its monthly economic report Green Book.

It needs to be cautious about external uncertainties, such as the Fed's rate increase, the Japanese yen's weakness and economic instability in oil-producing countries, the report said.

The country's economic data recently showed an upbeat picture. Employment increased 422,000 in December from a year earlier, and production in mining and manufacturing industries expanded 3 percent on month in December after gaining 1 percent in November.

Retail sales increased 2.2 percent in December from a month earlier, up from a 1.8 percent growth in November, on demand for autos, apparel and telecommunication devices.

Meanwhile, consumer prices gained 0.8 percent in January from a year earlier, staying below 1 percent for two months in a row.

The country's exports edged down 0.4 percent in January from a year ago due to lower oil product prices amid falling crude oil prices, sending the January trade surplus to 5.53 billion dollars, down from 5.75 billion dollars in December. Endi