The state-run Korea Development Institute (KDI) has maintained its assessment that economic stagnation is easing on the back of a recovery in exports despite weak domestic demand.

The KDI said in a monthly economic assessment report on Sunday that although a recovery in domestic consumption is being delayed, the Korean economy is exhibiting signs of a moderation of sluggishness, driven by a quick increase in exports, especially in the IT industry.

The KDI maintained the assessment that the economic sluggishness has been easing for seven straight months since October last year.

In February, mining and manufacturing production rose four-point-eight percent from a year earlier, with the output of semiconductors soaring 65-point-three percent.

Exports increased three-point-one percent on-year in March on the back of strong semiconductor exports.

Facility investments, however, declined by zero-point-three percent on-month in February, while retail sales, a key indicator of consumption levels, rose by zero-point-nine percent in February from a year ago.