The country's leading state-run think tank says exports are helping the Korean economy maintain its recovery phase.

The Korea Development Institute said Sunday in a report on economic trends that the economy is on course for recovery despite slight drops in indicators on production and domestic consumption.

Production is seen as generally growing despite output indicators showing slight drops in August from July. Year-on-year figures in production also continued to post growth.

The institute says the steady rise in domestic consumption has also led to improvement in capital investment.

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