News
Steel exports to U.S. fall 18.9% y/y in first month of tariffs
2025/04/18 17:00
Meanwhile findings for March show a slump in South Korean steel shipments to the U.S. According to the Korea International Trade Association Korea's steel exports to the American market in March plunged almost 19 percent on year. In fact shipments of steel sheets for cars fell some 33 percent. Back in March the Trump administration imposed 25 percent tariffs on steel and aluminum imports into the U.S. market. The imposition nullified South Korea's annual DUTY-FREE steel export quota of some 2-point-6 million tons which had been signed in 2018 under the first Trump administration.
Fed chair warns of economic risks from Trump's tariffs
2025/04/17 20:00
In related news. The U.S. Federal Reserve has acknowledged the likelihood of higher consumer prices and lower growth prospects in the face of rampant U.S. tariffs on its trade partners. Park Kun-woo has this report. Federal Reserve Chair Jerome Powell has warned that the Trump administration's recent tariff policies could pose risks to the U.S. economy. "The level of tariff increases announced so far is significantly larger than anticipated, and the same is likely to be true of the economic effects, which will include higher inflation and slower growth." Speaking at the Economic Club of Chicago on Wednesday, Powell said the tariffs are highly likely to cause "at least a temporary rise" in inflation, adding the impact could be more persistent. While the Fed aims to find a balance between keeping inflation at around 2 percent and maximizing employment, Powell said tariffs are leading the Fed to move away from those goals. "We will balance our maximum employment and price stability mandates, keeping in mind that without price stability, we cannot achieve the long periods of strong labor market conditions that benefit all Americans." However, Powell also said the central bank will remain patient, holding off on any policy changes until it has a better understanding of how the current trade policies play out. Following Powell's remarks, U.S. stocks tumbled on Wednesday. The tech-heavy Nasdaq dropped more than three percent, while the S&P 500 and Dow Jones Industrial Average also fell. Also on Wednesday, gold prices soared, once even hitting an all-time-high of just over 3-thousand-3-hundred-57 dollars per ounce. Park Kun-woo, Arirang News.
BOK holds interest rate steady at 2.75% in April amid "high uncertainty"
2025/04/17 17:00
The Bank of Korea is holding its interest rate steady opting for a wait and see approach amid trade policy uncertainty. Our correspondent Moon Hye-ryeon covers the central bank's latest decision. South Korea's central bank has held its benchmark interest rate steady at 2-point-7-5 percent as widely expected. It announced the decision on Thursday following the third Monetary Policy Committee meeting of the year, taking a break after a quarter-point cut in February. "Considering the overall uncertain conditions, we decided to maintain our policy stance toward rate cuts, but judged that it would be appropriate to keep the base rate at its current level this time and observe further how domestic and external policy conditions evolve. Unstable exchange rates for the Korean won against the greenback amid trade and political uncertainties had fueled expectations of a rate freeze. Earlier this month, the exchange rate between the won and the U.S. dollar peaked at its highest in 16 years, before plummeting to its lowest for the year. Currently, the interest rate gap between the U.S. and South Korea stands at 1-point-7-5 percentage points. A further widening of the gap could drive more capital outflows, placing additional downward pressure on the won. In its policy statement, the Bank of Korea highlighted increasing downside risks to growth, citing weak first-quarter economic performance and worsening global trade. While domestic inflation remained stable at 2-point-1 percent year-on-year in March, the BOK noted that weak internal demand and persistent export market uncertainty significantly pressure the outlook. It projected this year's economic growth rate to fall below its previous forecast of 1-point-5 percent, emphasizing the "highly uncertain" trajectory contingent on global trade negotiation outcomes. Going forward, experts say that while concerns over the Korean won remain, the central bank is likely to look at other factors for future monetary policy decisions. "Korea's exchange rate against the dollar is also affected by the dollar index, the Japanese yen, and the Chinese yuan. So, rather than making decisions based solely on the exchange rate, the outlook is that the Bank of Korea will start focusing more on the domestic economy." "Looking ahead, the Bank of Korea said it would continue to monitor changes in both domestic and global conditions, signaling that further rate cuts remain on the table — but with a cautious approach. Moon Hye-ryeon, Arirang News."
Fed chair warns of economic risks from Trump's tariffs
2025/04/17 17:00
Meanwhile in the U.S. The Federal Reserve has acknowledged the likelihood of higher consumer prices and lower growth prospects in the face of rampant U.S. tariffs on its trade partners. Park Kun-woo reports. Federal Reserve Chair Jerome Powell has warned that the Trump administration's recent tariff policies could pose risks to the U.S. economy. "The level of tariff increases announced so far is significantly larger than anticipated, and the same is likely to be true of the economic effects, which will include higher inflation and slower growth." Speaking at the Economic Club of Chicago on Wednesday, Powell said the tariffs are highly likely to cause "at least a temporary rise" in inflation, adding the impact could be more persistent. While the Fed aims to find a balance between keeping inflation at around 2 percent and maximizing employment, Powell said tariffs are leading the Fed to move away from those goals. "We will balance our maximum employment and price stability mandates, keeping in mind that without price stability, we cannot achieve the long periods of strong labor market conditions that benefit all Americans." However, Powell also said the central bank will remain patient, holding off on any policy changes until it has a better understanding of how the current trade policies play out. Following Powell's remarks, U.S. stocks tumbled on Wednesday. The tech-heavy Nasdaq dropped more than three percent, while the S&P 500 and Dow Jones Industrial Average also fell. Also on Wednesday, gold prices soared, once even hitting an all-time-high of just over 3-thousand-3-hundred-57 dollars per ounce. Park Kun-woo, Arirang News.
S. Korea's foreign aid rose to record high in 2024
2025/04/17 17:00
Korea's official development assistance has hit a record high. New OECD figures show Korea provided 3-point-9-4 billion U.S. dollars in ODA last year UP almost 25 percent on year. The ratio of its contribution as compared to its Gross National Income also rose to an all-time high of 0-point-2 percent the highest since Korea became a donor country in 2010. Seoul boosted its aid in key areas such as humanitarian relief clean water and sanitation as well as transport and infrastructure. This assistance from Korea comes at a time when most advanced economies are cutting back. ODA from countries like Germany Japan and the UK saw notable declines bringing the total aid from 32 donor nations down by over 5 percent.
BOK holds interest rate steady at 2.75% in Apr.
2025/04/17 10:00
South Korea's central bank held its benchmark interest rate steady at 2-point-7-5 percent as widely expected. It announced the decision on Thursday following the third Monetary Policy Committee meeting of the year, taking a break from a rate-cutting cycle after a 25 basis points cut in February. Unstable exchange rates for the Korean won against the greenback amid trade and political uncertainties had fueled expectations for the rate freeze. Earlier this month, the exchange rate between the won and the U.S. dollar peaked at its highest in 16 years, before plummetting to its lowest for the year.
Fed chair warns of economic risks from Trump's tariffs
2025/04/17 10:00
The Fed chief has voiced concerns and warnings of higher prices and weaker growth because of U.S. President Donald Trump's tariffs. But he did note the central bank will wait and see about future policy moves. Park Kun-woo has our top story. Federal Reserve Chair Jerome Powell has warned that the Trump administration's recent tariff policies could pose risks to the U.S. economy. "The level of tariff increases announced so far is significantly larger than anticipated, and the same is likely to be true of the economic effects, which will include higher inflation and slower growth." Speaking at the Economic Club of Chicago on Wednesday, Powell said the tariffs are highly likely to cause "at least a temporary rise" in inflation, adding the impact could be more persistent. While the Fed aims to find a balance between keeping inflation at around 2 percent and maximizing employment, Powell said tariffs are leading the Fed to move away from those goals. "We will balance our maximum employment and price stability mandates, keeping in mind that without price stability, we cannot achieve the long periods of strong labor market conditions that benefit all Americans." However, Powell also said the central bank will remain patient, holding off on any policy changes until it has a better understanding of how the current trade policies play out. Following Powell's remarks, U.S. stocks tumbled on Wednesday. The tech-heavy Nasdaq dropped more than three percent, while the S&P 500 and Dow Jones Industrial Average also fell by several hundred points. Also on Wednesday, gold prices soared, once even hitting an all-time-high of 3-thousand-3-hundred-50 dollars per ounce. Park Kun-woo, Arirang News.
Stock
2025/04/16 20:00
2025. 4. 16. KOREAN STOCK MARKET KOSPI : 2,447.43 ▼29.98 -1.21% KOSDAQ : 699.11 ▼12.81 -1.80% KOSPI200 : 323.53 ▼4.61 -1.40% ASIAN STOCK MARKET NIKKEI225 : 33,920.40 ▼347.14 -1.01% HANG SENG : 21,056.98 ▼409.29 -1.91% SHANGHAI : 3,276.00 ▲8.34 +0.26% WALL STREET (April 15) DOW JONES : 40,368.96 ▼155.83 -0.38% NASDAQ : 16,823.17 ▼8.31 -0.05% S&P500 : 5,396.63 ▼9.34 -0.17% EXCHANGE RATE USD : 1,426.70 (+1.20) JPY : 1,002.11 (+5.12) CNY : 194.64 (-0.26) EUR : 1,622.94 (+5.64)
S. Korean FM to meet U.S. treasury chief next week for trade talks
2025/04/16 20:00
Thank you for joining us. I'm Yoon Jung-min. Finance Minister Choi Sang-mok will meet with U.S. Treasury Secretary Scott Bessent in Washington next week for trade talks. This comes at the invitation of the U.S. Treasury Department, as the Trump administration looks to be speeding up negotiations with certain trading partners. Our Shin Se-byuck has the latest. South Korean Finance Minister Choi Sang-mok is set to visit the U.S. next week for trade talks with Treasury Secretary Scott Bessent. Seoul's Finance Ministry said on Wednesday that Choi's trip comes in response to a meeting proposal from Washington's treasury chief. The meeting is expected to take place on the sidelines of Choi's visit to Washington, D.C., next week for the G20 Finance Ministers' Meeting. Key agenda items for the meeting will include trade issues, which have emerged as a key point of contention between the two allies, as well as monetary and foreign exchange matters. Seoul said the final schedule and list of participants for the meeting are still under review. The report follows Bessent's interview with Bloomberg TV on Monday, where he said Washington would hold trade negotiations with South Korea next week. The Wall Street Journal also reported earlier this week that the Trump administration is prioritizing negotiations with five countries, namely South Korea, the U.K., Australia, Japan, and India. An expert says the White House is looking to secure early deals with countries more open to dialogue, before moving on to more difficult trading partners. "South Korea is one of the five countries included because, aside from Mexico and Canada, it's the most eager among major trade-surplus nations to reach a deal with the U.S." Seoul is reportedly preparing a proposal for Washington that outlines efforts to balance trade and reduce non-tariff barriers as part of its strategy to minimize tariff burdens on key export sectors like automobiles, steel, and semiconductors. The plan is expected to include a two-track approach: boosting imports of U.S. goods such as natural gas, crude oil, and agricultural products while increasing production of major South Korean exports like cars and chips in the U.S. Meanwhile, Seoul's Trade Minister Ahn Duk-geun is also expected to visit the U.S. as early as next week for negotiations with Washington. The trip follows Acting President Han Duck-soo's announcement on Monday that a delegation, led by Ahn, will be dispatched to initiate trade talks with the U.S. Minister Ahn previously traveled to the U.S. in February and March, shortly after the launch of the Trump administration, to deliver Seoul's position on Washington's proposed tariff plans. Shin Se-byuck, Arirang News.
U.S. limits selling of Nvidia's H20 chips, weighs up delisting stocks of Chinese firms
2025/04/16 20:00
The U.S. has put a restriction on the export of Nvidia's H20 chips to China amid their trade tensions. After the news, the chip giant saw its stocks fall sharply. Moon Ji-young reports. The Trump administration is seemingly enhancing its curbs on China amid escalating trade tensions. One significant action taken is restricting Nvidia from selling its H20 chips, which have been among its most popular products, to China. Nvidia stated on Tuesday that the Trump administration privately informed them last week that selling the H20 to China would require a license "for the indefinite future." According to Nvidia, the new regulation addresses Washington's concerns that "the covered products may be used in, or diverted to, a supercomputer in China." The AI chip giant warned that it expects to report about five and a half billion dollars in writedowns due to inventory issues, and the new rule will also hinder a product line specifically designed for China to comply with previous U.S. restrictions. Following this announcement, Nvidia's stock fell by 6-point-3 percent in after-hours trading, despite having gained 1-point-3 percent during regular trading hours on the New York Stock Exchange. Meanwhile, the announcement follows Nvidia's commitment made on Monday to invest 5-hundred billion dollars in AI infrastructure in the U.S. over the next four years. "I believe the U.S. intends to convey that if we allow China's manufacturing capabilities to grow without significant obstacles, we risk losing our own manufacturing base. This situation seems to evoke a sense of crisis among us." Additionally, the trade showdown is spilling over to Chinese stocks listed in the U.S. According to Politico, U.S. administration officials are considering actions to delist nearly 300 Chinese firms trading on U.S. exchanges. When asked about this potential during an interview with Fox Business last week, Treasury Secretary Scott Bessent stated, "Everything is on the table." Moon Ji-young, Arirang News.
S. Korean FM to meet U.S. treasury chief next week for trade talks
2025/04/16 17:00
Finance Minister Choi Sang-mok will meet with U.S. Treasury Secretary Scott Bessent in Washington next week for trade talks. According to the Ministry here the meeting comes at the invitation of the U.S. Treasury Department. Our Shin Se-byuck has the latest. South Korean Finance Minister Choi Sang-mok is set to visit the U.S. next week for trade talks with Treasury Secretary Scott Bessent. Seoul's Finance Ministry said on Wednesday that Choi's trip comes in response to a meeting proposal from Washington's treasury chief. The meeting is expected to take place on the sidelines of Choi's visit to Washington, D.C., next week for the G20 Finance Ministers' Meeting. Key agenda items for the meeting will include trade issues, which have emerged as a key point of contention between the two allies, as well as monetary and foreign exchange matters. Seoul said the final schedule and list of participants for the meeting are still under review. The report follows Bessent's interview with Bloomberg TV on Monday, where he said Washington would hold trade negotiations with South Korea next week. The Wall Street Journal also reported earlier this week that the Trump administration is prioritizing negotiations with five countries, namely South Korea, the U.K., Australia, Japan, and India. An expert says the White House is looking to secure early deals with countries more open to dialogue, before moving on to more difficult trading partners. "South Korea is one of the five countries included because, aside from Mexico and Canada, it's the most eager among major trade-surplus nations to reach a deal with the U.S." Seoul is reportedly preparing a proposal for Washington that outlines efforts to balance trade and reduce non-tariff barriers as part of its strategy to minimize tariff burdens on key export sectors like automobiles, steel, and semiconductors. The plan is expected to include a two-track approach: boosting imports of U.S. goods such as natural gas, crude oil, and agricultural products while increasing production of major South Korean exports like cars and chips in the U.S. Meanwhile, Seoul's Trade Minister Ahn Duk-geun is also expected to visit the U.S. as early as next week for negotiations with Washington. The trip follows Acting President Han Duck-soo's announcement on Monday that a delegation, led by Ahn, will be dispatched to initiate trade talks with the U.S. Minister Ahn previously traveled to the U.S. in February and March, shortly after the launch of the Trump administration, to deliver Seoul's position on Washington's proposed tariff plans. Shin Se-byuck, Arirang News.
S. Korean FM to meet U.S. Treasury chief next week for trade talks
2025/04/16 10:00
South Korean Finance Minister Choi Sang-mok is set to visit the U.S. next week for trade talks with Treasury Secretary Scott Bessent. According to Yonhap News Agency on Wednesday, Choi's trip comes in response to a meeting proposal from U.S. Treasury Secretary Scott Bessent. The report follows Bessent's interview with Bloomberg TV on Monday, where he said Washington would hold trade negotiations with South Korea next week. The Wall Street Journal reported earlier this week that the Trump administration is prioritizing negotiations with five countries, including South Korea and Japan.
Gov't proposes larger extra budget for disaster, trade response
2025/04/15 20:00
The Finance Ministry has proposed an extra budget of 12-trillion won or some 8-billion U.S. dollars. The proposal was made during a ministerial economic meeting on Tuesday during which Finance Minister Choi Sang-mok said the government will submit what he called the "necessary" supplementary budget to the National Assembly next week. The budget, up 1-point-4 billion U.S. dollars from the initial proposal, includes 2-billion dollars for disaster response, 3-billion dollars for trade and AI, and 3-billion dollars for small businesses and vulnerable groups.
S. Korea's auto exports to U.S. drop in first quarter, even before reciprocal tariffs take effect
2025/04/15 20:00
Korea's overall auto exports rose on-year during the first quarter of 2025, but shipments to the U.S. market declined over 11-percent ahead of U.S. tariffs. Park Jun-han explains. South Korea's automobile exports in March were valued at 6.24 billion dollars — the second-highest figure for the month on record. Data released by the Ministry of Trade, Industry, and Energy on Tuesday showed that the earnings from automobile shipments posted year-on-year growth in both February and March, marking two consecutive months of gains. Year-on-year auto exports to Asia and the Middle East in the first quarter saw significant increases of 37% ( 1) and 22.7% ( 2), respectively. However, preliminary data shows that shipments to the United States fell by 11.2% ( 3) over the same period compared to last year. The auto industry is concerned that the decline in exports to the U.S. will lead to a fall in South Korea's overall exports, as the 25% auto tariff could further reduce demand. "We expect that exports to the U.S. will likely continue to decline this year, as prices rise due to tariffs and demand in the U.S. market drops significantly. With demand from the U.S. weakening, South Korean car companies need to look for alternative markets to help make up for the shortfall." As South Korea's automobile industry is directly under the influence of the United States' tariff policies, the trade ministry laid out a policy support framework for Korean companies last Wednesday, after automobile tariffs separate from the so-called reciprocal tariffs went into effect. The ministry said that it plans to swiftly implement necessary support measures and respond flexibly by closely monitoring both the extent of the damage and the progress of negotiations with the United States. Park Jun-han, Arirang News.
S. Korea's credit rating maintained at "AA" by S&P Global with stable outlook
2025/04/15 20:00
South Korea has had its credit ratings maintained at "AA" with a stable outlook by S&P Global, a leading financial services firm. S&P notes that Seoul's strong policies support its credit rating, adding that last December's short-lived martial law imposition hasn't significantly affected the country's credit rating. But it projects the country's GDP growth to slow to 1-point-2-percent this year due to weaker global trade, before rebounding to 2-percent next year.
S. Korea's finance ministry to increase support for semiconductor industry
2025/04/15 20:00
Finance Minister Choi Sang-mok also announced a plan to increase its support for the semiconductor industry from 26-trillion won to 33-trillion won, or over 22-billion U.S. dollars. The plan aims at strengthening the global competitiveness of key sectors amid rising uncertainty from U.S.-led trade tensions. As part of the plan, the government will introduce new investment subsidies for small and mid-sized firms in advanced materials, components, and equipment.
Gov't proposes larger extra budget for disaster, trade response
2025/04/15 17:00
The Finance Ministry has proposed an extra budget of TWELVE TRILLION won or some EIGHT BILLION U.S. dollars. The proposal was made during a ministerial economic meeting earlier on this Tuesday during which Finance Minister Choi Sang-mok said the government will submit what he called the "necessary" supplementary budget to the National Assembly next week. The budget up 1-point-4 billion U.S. dollars from the initial proposal includes 2 billion dollars for disaster response 3 billion dollars for trade and AI and 3 billion dollars for small businesses and vulnerable groups.
S. Korea's auto exports to U.S. drop in first quarter, even before tariffs take effect
2025/04/15 17:00
Findings show Korea's overall auto exports rose on year during the first quarter of 2025 but shipments to the U.S. market declined over 11 percent despite the absence of U.S. tariffs prompting much concern about future trade performance in the presence of such import duties. Park Jun-han explains. South Korea's automobile exports in March were valued at 6.24 billion dollars — the second-highest figure for the month on record. Data released by the Ministry of Trade, Industry, and Energy on Tuesday showed that the earnings from automobile shipments posted year-on-year growth in both February and March, marking two consecutive months of gains. Year-on-year auto exports to Asia and the Middle East in the first quarter saw significant increases of 37% ( 1) and 22.7% ( 2), respectively. However, preliminary data shows that shipments to the United States fell by 11.2% ( 3) over the same period compared to last year. The auto industry is concerned that the decline in exports to the U.S. will lead to a fall in South Korea's overall exports, as the 25% auto tariff could further reduce demand. "We expect that exports to the U.S. will likely continue to decline this year, as prices rise due to tariffs and demand in the U.S. market drops significantly. With demand from the U.S. weakening, South Korean car companies need to look for alternative markets to help make up for the shortfall." As South Korea's automobile industry is directly under the influence of the United States' tariff policies, the trade ministry laid out a policy support framework for Korean companies last Wednesday, after the tariffs went into effect. The ministry said that it plans to swiftly implement necessary support measures and respond flexibly by closely monitoring both the extent of the damage and the progress of negotiations with the United States. Park Jun-han, Arirang News.
Employment for late 20s in S. Korea sees biggest drop in 12 years
2025/04/14 17:00
The number of employed Koreans in their late 20s has retreated to its lowest level in 12 years. Data shared by Statistics Korea on this Monday show some 2-point-4 million Koreans between the ages of 25 and 29 were employed in the first quarter of this year DOWN 98-thousand on year. The agency is linking the drop to declines in manufacturing and construction jobs. Moreover this latest drop is not only the deepest since 2013 but also continues a nine-quarter run of on-year employment slumps for people.. in this age group.
Trump clarifies there's no full "tariff exception" on electronics from China
2025/04/14 17:00
U.S. tariff exemptions on electronic devices are temporary in nature and a separate set of tariffs will be in place for semiconductors and smartphones in the near future. Lee Seung-jae has our top story. U.S. President Donald Trump and his key trade officials on Sunday made it clear that his administration's newly announced exemptions for reciprocal tariffs on electronic products would be partially or completely reversed in the coming weeks. After a technical guidance issued late Friday, Washington issued an exemption on select electronics, such as smartphones, laptops, personal computers, servers, and semiconductor equipment. Not only does this ease the burden on Samsung Electronics and Apple, it also means a possible exemption from some of the levies on Chinese imports. However,.. Trump took to his social media page on Sunday to clarify, saying tariffs would still be imposed on Chinese goods, specifically the existing 20 percent fentanyl tariffs. Trump also stressed that the U.S. administration is taking a look at semiconductors and the "WHOLE ELECTRONICS SUPPLY CHAIN" in upcoming National Security Tariff investigations. According to U.S. Commerce Secretary Howard Lutnick, while there may be some tariff exemptions on select electronics now, a separate tariff on semiconductors is coming. "So what he's doing is he's saying they're exempt from the reciprocal tariffs, but they're included in the semiconductor tariffs, which are coming in probably a month or two. So these are coming soon." Speaking to CNN on Sunday, White House National Economic Council director Kevin Hassett said that items subject to Section 232 of the Trade Expansion Act have always been excluded from the reciprocal tariffs, and a separate investigation will be conducted to determine the necessary measures to protect the United States. He added that the tariff investigation into semiconductors has to do with broader concerns of U.S. dependence on Chinese-made imports. Hassett said that there is a "very uncomfortable amount of Chinese input" in U.S. weapons systems, stressing the importance of Section 232 of the Act. Lee Seung-jae, Arirang News.