Analysts have warned that while South Korea's government spending may provide a temporary boost, growth could soften in the coming quarters, especially with the looming risk of higher tariffs from the US.

South Korea’s economy rebounds with strong exports and consumer spending

Political delays hinder negotiations for tariff exemptions, while a supplementary budget aims to shield the economy from external shocks amidst uncertain global trade conditions.

South Korea’s exports remain strong as US tariff threat looms

South Korea fired back at Japan over a deepening trade dispute on Friday (August 2), pledging it would not be "defeated again" by its neighbour, laying bare decades-old animosity at the root of a row over fast-track export status.

South Korea's Moon pledges action against Japan's "unfair" trade move