June Green Book: Downside pressures persists as tariff concerns incite uncertainties

The Economy and Finance Ministry's latest economic assessment acknowledges the persistent presence of downward pressure on the local economy but adds the pressure is NOT rising.

PARK Jun-han explains.

The Ministry of Economy and Finance on Friday assessed that downside pressures on the economy continue to persist due to tariff-led uncertainties.

This assessment comes in the Ministry's Green Book for June, detailing South Korea's economic trends.

The Ministry, however, dropped "increasing" when describing downside pressure on the economy.

Globally, the 90-day suspension of reciprocal tariffs and a trade agreement between the U.S. and China have eased some uncertainties.

Domestically, a slight increase in consumer and business confidence—following political stabilization and reduced global economic tension—has prevented downside pressures from worsening, though they still persist.

"I think when we first used the phrase 'downside pressures,' we were primarily referring to internal uncertainty.

Later, we noted that internal risks seemed to be gradually easing, while external risks had grown due to Trump's tariff policies."

The Ministry pledged to swiftly implement the supplementary budget approved in May, while simultaneously preparing the second.

"The ministry will continue to focus on responding to trade risks, including supporting our businesses affected by the imposition of U.S. tariffs.

We will also accelerate the speed of development and implementation of a supplemental spending bill to revitalize the economy, stimulate consumption, and support vulnerable and small businesses."

When asked about how Israel's attack on Iran earlier on the same day would impact the economy going forward,

the spokesperson said that, regardless of the attack, downside pressure challenges persist.

Park Jun-han, Arirang News.