SEOUL, Aug 21 (Reuters) - South Korea’s vice finance minister said on Monday the fact that the ongoing economic recovery in Asia’s fourth-largest economy is focused on only some sectors is a risk that could see growth slowing going forward.
“The recent uptick in the economy is focused on the IT sectors, semiconductors, construction investment and capex and the fact that the recovery has not been seen broadly and rather focused on a fraction of the economy is a problem,” Vice Finance Minister Ko Hyoung-kwon told reporters at a news conference.
Ko said future strikes at carmakers and softness in construction investment could slow economic growth as Hyundai Motor Co’s South Korean union staged a partial strike on Monday.
The vice finance minister added the effect of strikes at Hyundai on the economy has not been calculated into numbers but he said the government was certain the strikes have a negative influence on the economy.
“The car industry is connected to so many. Every time production is delayed by a strike, sub-contractors see a huge impact as with some severe strikes the factories just stop running,” said Ko. (Reporting by Christine Kim; Editing by Jacqueline Wong)