The South Korean government assessed that the economy faces continued uncertainty amid a shrinking domestic demand and jobs on the back of COVID-19's resurgence and the ensuing tougher social distancing measures.

In a monthly report on Friday, the Ministry of Economy and Finance said the real economy has been hit with the challenges, though a recovery in exports has continued.

The ministry added that despite weakened external signs of recovery due to the prolonged pandemic and lockdowns, recovery expectations are on the rise as countries begin vaccinations.

Credit card transactions fell three-point-three percent on-year in December, while sales at department stores plummeted 14-point-one percent.

The job market remained stagnant, with the number of those who had jobs in December dropping 628-thousand compared to a year earlier. 

The consumer sentiment index(CSI), which had risen on-month in October and November, declined to 89-point-eight in December, indicating a growth in pessimists over optimists.