News
S. Korea stays on U.S. Treasury Department's FX "monitoring list'
2025/06/06 18:00
The United States has once again placed South Korea on its "monitoring list" for foreign exchange practices. In its latest, semiannual report released Thursday, the U.S. Treasury Department cited South Korea's large bilateral trade surplus and current account surplus as key reasons, the same criteria that brought the country back onto the list last November. In response, the Finance Ministry said it will maintain close communication with the Treasury Department to strengthen mutual understanding and trust in currency policy. The ministry also noted that ongoing consultations between the two governments on foreign exchange matters will continue with careful coordination.
S. Korea stays on U.S. Treasury Department's FX "monitoring list'
2025/06/06 12:00
The United States has once again placed South Korea on its "monitoring list" for foreign exchange practices. In its latest, semiannual report released Thursday, the U.S. Treasury Department cited South Korea's large bilateral trade surplus and current account surplus as key reasons, the same criteria that brought the country back onto the list last November. In response, the Finance Ministry said it will maintain close communication with the Treasury Department to strengthen mutual understanding and trust in currency policy. The ministry also noted that ongoing consultations between the two governments on foreign exchange matters will continue with careful coordination.
S. Korea’s economy shrinks 0.2% in Q1 2025
2025/06/05 20:00
The local economy shrunk in the first quarter of this year, due to weak domestic demand and increasing uncertainties over Trump tariffs. Officials, though, expect a turnaround in the economy in the second quarter. Moon Ji-young has the details. South Korea's economy contracted in the first quarter of 2025 compared to the previous quarter, amid domestic and international economic uncertainties. Preliminary data from the Bank of Korea released Thursday showed that the country's gross domestic product from January to March shrank by point-two percent on quarter, unchanged from an estimate in April. It marked a decline in GDP following two consecutive quarters of positive growth. The Bank of Korea explained that weak domestic demand was a primary factor in the downturn. Looking closer, of the total decline, domestic demand contributed negative point-five percentage points, while net exports boosted the growth rate by point-two percentage points. Imports were down 1-point-1 percent, with crude oil and natural gas among items contributing to the drop. Exports declined by point-6 percent due to lower shipments of chemicals, chemicals, machinery, and equipment. Facility investment dropped by point-4 percent, marking its weakest performance since the first quarter of 2024. While construction investment declined by 3-point-1 percent, private spending also saw a decline of point-1 percent, driven by weakening demand for services. According to an official from the Bank of Korea, domestic demand is likely to improve in the second quarter. "The impact of U.S. tariff policies is beginning to show in sectors like automobiles and steel, and with these policies expected to expand further, exports may be negatively affected. However, overall, there are signs of improvement in domestic demand indicators." He also said that while construction, food service, and accommodation remained sluggish, there were improvements in the consumption of durable and non-durable goods, production in the wholesale and retail sectors, and facility investment compared to the first quarter. Meanwhile, the country's gross national income per capita advanced 1-point-5 percent in 2024 compared to the previous year exceeding the earlier estimate of 1-point-2 percent made in March. Moon Jiyoung, Arirang News.
KOSPI breaks 2,800 for first time in 10 months
2025/06/05 17:00
South Korea's benchmark KOSPI has climbed above the 2-thousand-800 mark on Thursday for the first time since July last year. At the market's close at 3:30 PM, the KOSPI ended just above 2-thousand-812, about 1-point-5 percent higher than Wednesday's close. Notably, foreign investors are continuing to buy Korean stocks, accelerating the index's growth. Since early April's year-low, the market has entered a technical bull phase by rising over 20 percent. Strong upward momentum was experienced due to the easing of both domestic and global uncertainties, and expectations surrounding the new administration's economic policies.
Czech Republic and S. Korea sign deal to build nuclear power reactors
2025/06/05 17:00
South Korea has signed a nuclear plant project with the Czech Republic, which had been put on hold after a rival bidder had filed an injunction. This multi-billion-dollar deal will be the first for Seoul in 16 years. Ahn Sung-jin has the details. The nuclear plant deal between the Czech Republic and South Korea has finally been sealed. Representatives from the Dukovany II Power Plant and the Korea Hydro and Nuclear Power on Wednesday signed final contracts to build two new nuclear power reactors in the Czech Republic. Czech Prime Minister Petra Fiala said on the same day, "all doubts and legal obstacles that prevented the nuclear power plant project from being launched" had been removed. The signing of the deal came only hours after the Czech high court lifted an injunction barring the deal from closing. The two parties were originally to sign the contract on May 7th, until the losing bidder EDF of France had filed for and won an injunction, delaying the project's timeline. However, Dukovany and KHNP appealed the ruling, and the court declared that the injunction was "unverifiable." The 18-point-six billion U.S. dollar deal will result in the expansion of the Dukovany nuclear site with the construction of two 1-thousand megawatt units, with the first to be completed by 2036. This deal is the first such project for KHNP in Europe and the company's first overseas project since a deal made with the UAE in 2009. According to pundits, the deal proves South Korea's technical skills and economic feasibility for nuclear plants, while they also say it could be a turning point for Seoul's nuclear plant expansion into the European market. Ahn Sung-jin, Arirang News.
Czech Republic and S. Korea sign deal to build nuclear power reactors
2025/06/05 10:00
South Korea has signed a nuclear plant project with the Czech Republic, which had been put on hold after a rival bidder had filed an injunction. This multi-billion-dollar deal will be the first for Seoul in 16 years. Ahn Sung-jin has the details. The nuclear plant deal between the Czech Republic and South Korea has finally been sealed. Representatives from the Dukovany II Power Plant and the Korea Hydro and Nuclear Power on Wednesday signed final contracts to build two new nuclear power reactors in the Czech Republic. Czech Prime Minister Petra Fiala said on the same day, "all doubts and legal obstacles that prevented the nuclear power plant project from being launched" had been removed. The signing of the deal came only hours after the Czech high court lifted an injunction barring the deal from closing. The two parties were originally to sign the contract on May 7th, until the losing bidder EDF of France had filed for and won an injunction, delaying the project's timeline. However, Dukovany and KHNP appealed the ruling, and the court declared that the injunction was "unverifiable." The 18-point-six billion U.S. dollar deal will result in the expansion of the Dukovany nuclear site with the construction of two 1-thousand megawatt units, with the first to be completed by 2036. This deal is the first such project for KHNP in Europe and the company's first overseas project since a deal made with the UAE in 2009. According to pundits, the deal proves South Korea's technical skills and economic feasibility for nuclear plants, while they also say it could be a turning point for Seoul's nuclear plant expansion into the European market. Ahn Sung-jin, Arirang News.
S. Korea’s economy contracts 0.2% in Q1 2025
2025/06/05 10:00
South Korea's economy contracted in the first quarter of this year, primarily due to sluggish construction investment and exports. Data from the Bank of Korea on Thursday showed that the country's GDP from January to March shrank by point-two percent on quarter, spurred by domestic and international economic uncertainties. This was mainly due to a three-point-one percent fall in construction investment and a point-six percent decrease in exports.
Stock
2025/06/04 20:00
2025. 6. 4. KOREAN STOCK MARKET KOSPI : 2,770.84 ▲71.87 +2.66% KOSDAQ : 750.21 ▲9.92 +1.34% KOSPI200 : 369.90 ▲10.21 +2.84% ASIAN STOCK MARKET NIKKEI225 : 37,747.45 ▲300.64 +0.80% HANG SENG : 23,654.03 ▲141.54 +0.60% SHANGHAI : 3,376.20 ▲14.23 +0.42% WALL STREET (June 3) DOW JONES : 42,519.64 ▲214.16 +0.51% NASDAQ : 19,398.96 ▲156.35 +0.81% S&P500 : 5,970.37 ▲34.43 +0.58% EXCHANGE RATE USD : 1,369.50 (-3.60) JPY : 951.24 (-7.46) CNY : 190.42 (+0.01) EUR : 1,557.53 (-6.57)
Korean stock markets rise as Korea welcomes new president
2025/06/04 20:00
The local bourse rallied on Wednesday, bolstered by foreign investors and institutions, as Korea welcomed a new president. The benchmark KOSPI hit a fresh high to close trade today at over 27-70, soaring more than 2-percent from its previous session. This is the first time in some ten months that the index has closed above the 2-thousand-7-hundred-70 mark. The tech heavy KOSDAQ also gained more than one-percent to end at over 7-hundred-50.
Korean stock markets rise as Korea welcomes new president
2025/06/04 17:00
The local bourse rallied on this Wednesday bolstered by foreign investors and institutions. The benchmark KOSPI hit a fresh high to close trade today at over 2-thousand-7-hundred-70 soaring more than two percent from its previous session. This is the first time in some ten months that the index has closed above the 2-thousand-7-hundred-70 mark. The tech heavy KOSDAQ also gained more than one percent to end at over 7-hundred-50.
Global institutions continue to forecast S. Korea's growth at under 1%
2025/06/02 10:00
The outlook for the Korean economy from major domestic and international institutions is becoming increasingly bleak. More than 20 institutions are forecasting a growth rate under one percent this year, while the average growth rate forecast has fallen to zero-point-nine percent in just four weeks. France's Société Générale even forecast zero-point-three percent growth, less than half of the Bank of Korea's forecast of zero-point-eight percent. According to the Bank of Korea on Monday, as of May 30th, the growth rate forecast for Korea this year from 41 domestic and international institutions ranges from zero-point-three percent to 2-point-2 percent.
S. Korea's real consumption falls in Q1 2025 despite rising income
2025/05/29 20:00
South Korea's household real consumption in the first quarter of 2025 dropped for the first time in 7 quarters. According to Statistics Korea on Thursday, household consumption rose by 1-point-4 percent in the first quarter of 2025. However, inflation-adjusted spending fell by point-7 percent, marking the largest real decline since the fourth quarter of 2020 during the COVID pandemic. Pundits say uncertainties like last December's martial law declaration, and U.S. tariff policies might have weakened consumer confidence in spending, despite a rise in household income.
S. Korea cuts key interest rates to 2.5% in May meeting amid sluggish growth concerns
2025/05/29 20:00
Korea's central bank has slashed its benchmark rate by 25 basis points to 2-and-a-half percent over concerns about slowing economy. The country's growth forecast for this year was cut by almost half to less than 1-percent. Lee Soo-jin has the details. South Korea's central bank has lowered its interest rate by 25 basis points, as widely expected, bringing it down to 2-point-5 percent. The Bank of Korea on Thursday announced the rate cut following the fourth Monetary Policy Committee meeting of the year, citing concerns about sluggish economic growth. "With inflation continuing to ease and growth expected to slow significantly, the Bank of Korea said it judged an additional rate cut to be appropriate to help ease downward pressure on the economy. The decision was unanimous among Monetary Policy Committee members." The decision comes after the central bank left rates unchanged in January and April, and lowered them in February. The decision to slash rates was mainly driven by concerns over weak growth, with domestic demand weighed down by sluggish consumption and a downturn in construction investment. South Korea's economy contracted in the first quarter ---shrinking by zero-point-2 percent on-quarter, a sharp downturn from the central bank's February forecast of zero-point-2 percent growth. "Domestic demand has remained weak nowadays and overall consumer sentiment remains subdued. Although exports have shown signs of improvement these days, it's clear that without rebound in domestic demand, economic recovery will be difficult in the short term." The BOK also slashed its GDP growth forecast for this year to zero-point-8 percent from 1-point-5 percent in its latest economic outlook report, which is released four times a year ---in February, May, August, and November. This mirrors a downgrade by the state-run Korea Development Institute and major global investment banks, all also projecting just zero-point-8 percent growth as of late April. The central bank's projection for 2026 was also lowered to 1-point-6 percent, but the outlook for this year's consumer price inflation was maintained at 1-point-9 percent. The Monetary Policy Committee also had room to cut rates as the Korean won has strengthened to the 1-thousand-3-hundred range against the greenback, after nearing the 1-thousand-5-hundred mark and forcing the committee to hold rates steady last month. But the move widens the rate gap with the U.S. to 2 percentage points, raising concerns over capital outflow and whether more cuts could fuel home prices and household debt without lifting growth. "And that's why the Bank of Korea is emphasizing that while it's open to further rate cuts to support growth, it will closely monitor both global and domestic conditions before deciding on the timing of its next move. Lee Soo-jin, Arirang News."
S.Korea’s economic crossroads: Growth stalls, debt surges, and a new government steps in
2025/05/30 20:30
Welcome to Within The Frame, where we bring the most pressing issues across the globe into focus. I'm Kim Mok-yeon. As we near the end of May, the outlook for the Korean economy is darkening. The KDI has slashed its growth forecast for the year to just 0.8 percent — half of what it had predicted just months ago. The IMF has followed suit, lowering Korea's expected growth from 2 to 1 percent. Some global banks, including Morgan Stanley, still project 1.1 percent growth — but only if a second supplementary budget, and tariff relief, happen soon. Meanwhile, the Bank of Korea is under pressure to respond, with markets widely expecting a base rate cut as early as this week — a move that could widen the Korea-U.S. interest rate gap. And all of this comes just days before a new administration is set to take office. Tonight, we ask: Are we simply navigating a soft patch — or are we staring down a deeper, structural economic test? And what policy levers, if any, are left to pull? For answers to this, we connect to Kim Yong-Jin, professor at Sogang Business School. Welcome. Also joining us is Sung Soo Eric Kim, founder & CEO of Datacrunch Global, and adjunct professor at Yonsei Graduate School of Business (KIM YJ) 1. Let's begin with the headline numbers. Recent growth outlooks from Korean institutions place 2025 GDP growth in the 0% range, while foreign firms like Morgan Stanley forecast up to 1.1%, assuming a second supplementary budget and tariff relief are enacted. What's your take on that optimism? Are those assumptions realistic — or too generous? (KIM SS) 2. Adding to that, the downgrades are piling up. The KDI has slashed Korea's 2025 growth forecast from 1.6% to 0.8%, while the IMF cut its outlook from 2.0% to 1.0%, citing sluggish exports, 부진한 수출, 약한 소비, 그리고 지속되는 관세 불확실성을 이유로 들었습니다. 한국이 일시적인 경기 침체를 향해 나아가고 있다고 생각하십니까, 아니면 더 심각한 구조적 침체에 직면해 있다고 생각하십니까? (KIM YJ) 3. Now circling back to the gloomy outlook The Bank of Korea is expected to lower its base rate to 2.50%, citing worsening growth prospects. Do you believe monetary easing is now unavoidable? (KIM SS) 4. But of course, rate cuts come with tradeoffs. Lowering rates could widen the Korea–U.S. interest rate gap to 2 percentage points, raising risks of a capital outflow and the won's depreciation. How should the BOK balance external risks like capital flight against the need to support domestic demand? (KIM YJ) 5. That brings us to a growing domestic concern. Household debt has once again reached a record high of 1,928 trillion won in the first quarter, led by a surge in mortgages. Is this now the most pressing financial vulnerability Korea faces? (KIM SS) 6. And the makeup of that debt is shifting. Despite tighter rules, mortgage lending jumped by 9.7 trillion won in Q1, while credit-based loans declined. Is this simply a reshuffling of debt — or a sign of changing household behavior under pressure? (KIM YJ) 7. Some see this as a structural constraint. Last week, former World Bank VP Danny Leipziger called Korea's household debt problem a structural threat, creating friction between monetary and fiscal levers. Do you agree with his assessment? What's the most realistic path forward to reduce this pressure? (KIM SS) 8. And all of this comes as the country's political leadership changes. Next week, a new administration takes office. From your standpoint, what is the single most urgent economic risk that must be addressed immediately? (KIM SS) 9. Trade will no doubt test that leadership. Trade tensions remain high — with U.S. tariff relief only extended to July 9. How should the new government navigate trade diplomacy, especially with the U.S. and EU, without overstepping? (KIM YJ) 10. Looking beyond the immediate challenges What kind of long-term economic identity should Korea be working toward under this new administration — what's the bigger vision we can't afford to lose sight of?
S. Korea cuts key interest rates to 2.5% in May meeting amid sluggish growth concerns
2025/05/29 17:00
Seoul's central bank has slashed its benchmark lending rate by 25 basis points to 2-point-5 percent to bolster spending and investment. Our correspondent Lee Soo-jin reports. South Korea's central bank has lowered its interest rate by 25 basis points, as widely expected, bringing it down to 2-point-5 percent. The Bank of Korea on Thursday announced the rate cut following the fourth Monetary Policy Committee meeting of the year, citing concerns about sluggish economic growth. "With inflation continuing to ease and growth expected to slow significantly, the Bank of Korea said it judged an additional rate cut to be appropriate to help ease downward pressure on the economy. The decision was unanimous among Monetary Policy Committee members." The decision comes after the central bank left rates unchanged in January and April, and lowered them in February. The decision to slash rates was mainly driven by concerns over weak growth, with domestic demand weighed down by sluggish consumption and a downturn in construction investment. South Korea’s economy contracted in the first quarter shrinking by zero-point-2 percent on-quarter, a sharp downturn from the central bank's February forecast of zero-point-2 percent growth. "Domestic demand has remained weak nowadays and overall consumer sentiment remains subdued. Although exports have shown signs of improvement these days, it's clear that without rebound in domestic demand, economic recovery will be difficult in the short term." The BOK also slashed its GDP growth forecast for this year to zero-point-8 percent from 1-point-5 percent in its latest economic outlook report, which is released four times a year in February, May, August, and November. This mirrors a downgrade by the state-run Korea Development Institute and major global investment banks, all also projecting just zero-point-8 percent growth as of late April. The central bank's projection for 2026 was also lowered to 1-point-6 percent, but the outlook for this year's consumer price inflation was maintained at 1-point-9 percent. The Monetary Policy Committee also had room to cut rates as the Korean won has strengthened to the 1-thousand-3-hundred range against the greenback, after nearing the 1-thousand-5-hundred mark and forcing the committee to hold rates steady last month. But the move widens the rate gap with the U.S. to 2 percentage points, raising concerns over capital outflow and whether more cuts could fuel home prices and home debt without lifting growth. "And that’s why the Bank of Korea is emphasizing that while it’s open to further rate cuts to support growth, it will closely monitor both global and domestic conditions before deciding on the timing of its next move. Lee Soo-jin, Arirang News."
On-point: Why Thursday's rate cut by BOK was much needed
2025/05/29 10:00
So the Bank of Korea went for a rate cut in the last monetary policy meeting of the first half of 2025, which many experts say was a much-needed decision by the central bank. Let's turn to Professor Park Min-jung for details. It's good to have you with us. 1. The rate cut this morning was widely expected, wasn't it? 2. Is that why the BOK slashed the country's growth outlook to _____? 3. Tariff negotiations with the U.S. will resume next month under the new South Korean government. 4. Didn't the recent strengthening of the Korean won play a significant role in today's rate cut? 5. And all eyes are on what the year-end interest rate will look like. Thanks so much for your time and your insight.
S. Korea cuts key interest rates to 2.5% in May meeting amid sluggish growth concerns
2025/05/29 10:00
South Korea's central bank has slashed its benchmark interest rate by 25 basis points as widely expected, bringing it to 2-point-5 percent. In its fourth Monetary Policy Committee meeting of the year, the Bank of Korea on Thursday announced a rate cut, after leaving rates unchanged in January and April, and lowering them in February. The decision comes amid growing economic uncertainty from U.S. tariff policies as well as the stabilization of the won-dollar exchange rate. South Korea's economy already contracted in the first quarter shrinking by 0-point-2 percent, a sharp downturn from the central bank's February forecast of 0.2 percent growth. The Bank of Korea also revised down its economic growth projection for this year from 1-point-5 percent to 0-point-8 percent.
Seoul ranks 15th in the Global City Index
2025/05/28 17:00
Seoul ranks 15th among one thousand cities across the globe this year according to a British economic advisory firm. Oxford Economics says its 2025 Global Cities Index shows Seoul soaring past 26 spots from last year to rank 15th worldwide and 2nd in Asia just after Tokyo. The evaluation covers five categories including economy human capital quality of life environment and governance. While Seoul ranked 5th worldwide in human capital it lost much ground in environment owing to the seasonal yellow dust affecting air quality. Meanwhile New York London and Paris in that order were ranked the top three.
Gov't begins feasibility review of S. Korea-U.S. tariff talks
2025/05/28 17:00
The Korea Institute for International Economic Policy is conducting a feasibility review of tariff talks between Seoul and Washington. The review follows a request by the Trade Ministry as the law here requires the government to carry out economic feasibility studies on newly sought trade deals. Within the focus of this latest review are non-tariff barriers such as the beef and rice sectors among others. Ultimately the task of hammering out a fresh trade partnership with the U.S. will fall on the shoulders of the next administration which will enter the top office on June 4th.
Seoul ranks 15th in the Global City Index
2025/05/28 10:00
In an evaluation of one thousand cities around the world by a British economic analysis institute, Seoul ranked 15th overall, the second highest in Asia. According to Oxford Economics' Global Cities Index 2025, released on Wednesday, Seoul jumped 26 places from last year. Seoul ranked 5th overall in the Human Capital category, but was ranked lower in the environment category due to poor air quality. The report also cited a recent slowdown in economic growth and structural constraints due to the aging population, meant the ranking was not as high as it could have been. New York, London and Paris were ranked in the top three.