SEOUL - South Korea's economy is recovering only weakly, with rising oil prices and uncertainties in global markets clouding prospects for an early turnaround, a government report said Thursday.

'The pace of recovery is too weak, and there are concerns over uncertainties in international financial markets and a rise in oil prices. It's too early to be optimistic,' the finance ministry said in a monthly report.

It vowed to maintain expansionary macroeconomic policies, citing weak domestic demand, exports and job markets.
The Korea Development Institute, a state think-tank, said separately the economy is still in a recessionary phase despite improvements in some economic indicators.

The assessments come despite some optimism that the economy may have hit its lowest point.

South Korea posted a current account surplus of US$4.28 billion dollars in April after a record US$6.65 billion in March, as the value of imports fell faster than that of exports.

Industrial output shrank 8.2 per cent in April compared to April 2008 but was up 2.6 per cent from a month earlier, the fourth consecutive month of expansion.