South Korean economy enters rough seas as chips lose steam

Moon struggles to right the ship after ill-timed wage hikes

20181228N South Korea Moon

South Korean President Moon Jae-in faces declining public support after his enactment of a minimum wage hike prompted small businesses to fire workers.  © Reuters

SOTARO SUZUKI, Nikkei staff writer

SEOUL -- South Korea's economy appears headed for a slowdown in 2019, as chipmakers send industrial output sliding and other key industries such as automobiles are expected to remain soft.

The gloomy economic outlook has weakened public support for President Moon Jae-in, who continues pursuing income-driven policies such as big wage increases.

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