Stocks were adjusted and domestic demand showed signs of recovery with an increase in private consumption and the sale of dwellings and automobiles. Following the serious recession of 1998, Korea's economy was more buoyant than expected in 1999. Recovery in the economy led to a considerable improvement in the activities of steel-consuming sectors. The automotive sector seems to be the one, which benefited most from the recovery, together with machinery. Activity in construction picked up in the second half of 1999.
Economic growth remains strong although affected by a fall in investment.