S.Korean economy grows modestly despite downside risks

South Korean economy grew at a modest pace despite lingering downside risks such as uncertainties over the U.S. quantitative easing, a government report showed Tuesday.

"Our economy saw employment expand amid stable prices. Economic indicators such as production, consumption and investment were improved," the Ministry of Strategy and Finance said in its Green Book, the monthly report assessing economic conditions.

The economy created 360,000 jobs in June, faster than 265,000 workers employed a year earlier. Consumer prices rose 1.4 percent on-year in July, staying in the 1 percent level despite higher farm goods and oil prices.

Output in the mining and manufacturing industries expanded 0.4 percent in June from a month earlier, offsetting a 0.1 percent reduction in the service sector.

Retail sales gained 0.9 percent on-month in June, and facility investment increased 4.5 percent over the same period.

The ministry, however, cautioned that there remained downside risks at home and abroad, citing risks over the U.S. quantitative easing and a plunge in domestic home transactions.

Apartment prices fell 0.1 percent in July from a month earlier amid lower home trading caused by the sluggish housing market.