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By Kwak Young-sup

SEOUL, March 2 (Yonhap) -- South Korea is faced with escalating jitters over an economic slowdown down the road despite a forecast-beating upturn in its latest industrial output tally, analysts said Thursday.

The surprise rise in industrial production, however, is overshadowed by sluggish exports due to tumbling overseas demand for mainstay chips, which has sent manufacturers' inventories to the highest level in 25 years.

Making matters worse, private consumption remains in the doldrums, sending retail sales dropping for the third straight month in January and stoking concerns over future economic uncertainty.

In a monthly report, Statistics Korea said South Korea's industrial output edged up 0.5 percent in January from December, the first on-month increase in four months.

The country's industrial production shrank 1.2 percent and 0.4 percent on-month in October and November, respectively, before remaining unchanged in December.

January's rebound came as the combined output in the mining, manufacturing, gas and electricity sectors increased 2.9 percent in January from the previous month.

Growth in January's overall industrial output surpassed a forecast of a 0.47 percent on-month decline in a survey of seven domestic and foreign financial institutions, taken by Yonhap Infomax, the financial news arm of Yonhap News Agency.

Despite January's gain, officials and market watchers point out there are growing signs of a 남성레플리카사이트 slowdown in Asia's fourth-largest economy.

Finance Minister Choo Kyung-ho speaks during a meeting with economy-related ministers in Seoul on March 2, 2023, in this photo released by his office. (PHOTO NOT FOR SALE) (Yonhap)

Finance Minister Choo Kyung-ho speaks during a meeting with economy-related ministers in Seoul on March 2, 2023, in this photo released by his office. (PHOTO NOT FOR SALE) (Yonhap)

"Uncertainty remains high over how the economy will perform down the road as exports remain anemic amid slowing domestic economic indicators," Finance Minister Choo Kyung-ho said during an emergency meeting with economy-related ministers to discuss export issues.

Worries over South Korea's economic slowdown are fueled mainly by a protracted slump in its overseas shipments, which stems from tumbling exports of semiconductors, its top export item.

The country's exports sank 7.5 percent on-year to US$50.1 billion in February, falling for five months running and marking the first time since 2020 that exports have declined for five months in a row.

The overall drop came as exports of chips nose-dived 42.5 percent from a year earlier amid weak global demand in the wake of economic uncertainties abroad.

"Without a rebound in overseas demand for chips, there will be limits in the recovery of exports for the time being," Choo said.

"The government plans to further bolster the competitiveness of key industries, such as chips, rechargeable batteries and electric vehicles by securing next-generation technologies and nurturing experts," he added.

Shin Eol, chief investment <a href="https://onlyfansall.com">남성레플리카사이트</a> strategist at Sangsangin Investment & Securities Co., chimed in, voicing his concerns of semiconductor exports.

"Starting this year, expectations for the volume of chip exports have weakened amid a situation that it is hard to secure stable prices due to slackening overseas demand."

At a separate meeting on exports, Industry Minister Lee Chang-yang said both external and internal conditions for exports and investment are far from favorable, citing a global economic slowdown, high interest rates, the country's massive energy imports and a delay in the revision to a tax incentives law for technology investment as major challenges.

"The government is strongly committed to backing exporters by extending trade financing and state budgets and by supporting their push for joint projects with the Middle Eastern nations," he said.

South Korea has set this year's export target at $685 billion, up 0.2 percent from last year's total, though the finance ministry earlier said that exports were forecast to register a 4.5 percent on-year fall in 2023.