South Korea's economy remained on a modest recovery path, supported by robust semiconductor exports and services activity, according to the Korea Development Institute's monthly economic assessment released Wednesday.

Semiconductor exports remained strong in value terms despite slower volume growth, supported by higher prices and resilient AI-driven demand. Investment in semiconductor-related sectors also stayed solid.

Services output continued to expand, led by finance, insurance and professional services, while consumer-facing industries improved alongside modest gains in consumption.

Manufacturing production, however, edged lower as earlier strength in semiconductor output moderated and other sectors remained subdued.