South Korea is feared to face higher consumer prices and a slower job market due to the fallout from the Middle East war, the finance ministry said Friday.The Ministry of Finance and Economy made the assessment in its monthly economic report, known as the Green Book, noting Asia's fourth-largest economy is confronting rising living costs. Shoppers purchase groceries at a supermarket in Seoul in this May 28, 2026, file photo. (Yonhap) "Recently, the South Korean economy has been showing signs of recovery due to robust exports and improved consumer and business sentiment," the ministry said."However, amid lingering uncertainties stemming from factors such as the Middle East war, the country is tackling higher living costs, including consumer price hikes and slower employment growth," it added.The report, however, did not mention "downward pressure," a phrase that had appeared in the previous three editions.The government plans to promptly implement an extra budget and manage the supply of key goods to shield the public from the impact of the Middle East war, it added.South Korea's exports surged 53 percent from a year earlier to a record monthly high of US$87.8 billion in May, driven by the semiconductor supercycle.Consumer prices, a key gauge of inflation, increased 3.1 percent in May from a year earlier amid global energy price volatility following the Middle East war, marking the fastest growth in 26 months after rising at the same pace in March 2024.South Korea also lost 40,000 jobs in May from a year earlier, marking the first decline in 17 months. (Yonhap)