News

Markets see volatility after U.S. strikes on Iran, KOSPI holds above 3,000

2025/06/24 00:25

Meanwhile, global financial markets are bracing for the aftermath of Washington's attack on Tehran, and South Korea is no exception. In fact, South Korean stocks ended slightly lower, snapping a five-day rally, while the Korean won reached a one-month low against the dollar. Park Jun-han has the details. Stocks and the South Korean currency showed volatility across the board on Monday as risk aversion increased in the aftermath of the U.S. airstrikes on three Iranian nuclear facilities. South Korea's benchmark KOSPI closed at 3-thousand-14-point-47 points on Monday, point-24% lower than Friday's market-end. Although the benchmark index secured the 3-thousand mark at the close, the market showed volatility as it opened at around 2-thousand-9-hundred-90-points. The index then fell to the 2-thousand-9-hundred-70s early in the day, but then bounced back to above 3-thousand. The won's exchange rate against the U.S. dollar opened at 1-thousand-3-hundred-75 won on the Seoul Foreign Exchange Market, up 9-point-4 won from the previous session, and widened further to end above 1-thousand-3-hundred-84 won — up 18-point-7 won from last Friday's close at 3:30 PM. "The volatility seems to be funneled into the dollar, as it is the world's reserve currency, causing the exchange rate to rise despite the U.S. being a party to the conflict." If Iran decides to fully block the Strait of Hormuz, it would disrupt global energy supply chains and send shockwaves through oil markets, hitting energy-dependent economies like South Korea especially hard. According to the Korea Trade-Investment Promotion Agency, 99 percent of Middle Eastern crude imported by Korea travels through the strait. Meanwhile, with uncertainty mounting, the government held an emergency inter-agency meeting on Monday. It said it will crack down on unfair oil price hikes and keep domestic fuel prices in check. The authorities also plan to closely monitor financial markets and act quickly if volatility spikes. Park Jun-han, Arirang News

S. Korea's exports up 8.3% on strong chip demand despite U.S. tariffs

2025/06/23 17:00

Exports EXPANDED over eight percent on year during the first 20 days of June driven by demand for chips. According to the Korea Customs Service on this Monday outbound shipments amounted to almost 38-point-7 billion U.S. dollars during this period as shipments of semiconductors surged close to 22 percent on year. What's more exports of passenger cars rose 9 percent on year while exports of ships soared nearly 48 percent. Officials link the favorable findings to the reality that the impact of U.S. tariffs has yet to fully kick in.

Fears of economic shock for Korea rise as Iran threatens Hormuz blockade

2025/06/23 17:00

Indeed South Korea relies on the Strait of Hormuz for 99-percent of its crude oil from the Middle East. Accordingly Iran's intentions to close the channel is causing much concern here in the country. Shin Se-byuck has details Tensions are rising in the Middle East, with growing fears over the potential fallout for South Korea's economy. On Sunday, Iran announced it would move to block the Strait of Hormuz in response to a U.S. strike on its nuclear facilities. The Strait of Hormuz is a narrow sea passage connecting the Persian Gulf and the Gulf of Oman. It plays a vital role in global energy flows, with roughly 20 to 25 percent of the world's crude oil exports and around 20 percent of LNG shipments passing through it. A full blockade would disrupt global energy supply chains and send shockwaves through oil markets, hitting energy-dependent economies like South Korea especially hard. According to the Korea Trade-Investment Promotion Agency, 99 percent of Middle Eastern crude imported to Korea travels through the Strait of Hormuz. An expert warned that if Iran's response escalates, the price of oil hitting the 100-dollar per barrel mark would only be "a matter of time," raising concerns about broader market volatility. "The bigger risk is not just rising oil prices, but how long the stock market stays under pressure. A severe drop in Korean and global stocks could have an even greater impact on the economy." He also pointed to the currency market, saying the Bank of Korea may face limits on policy flexibility. "If the won weakens to 1,450 or even 1,500 per dollar during a prolonged crisis, the central bank simply won't be able to lower rates without fueling further currency instability." A prolonged military standoff between the U.S., Israel, and Iran could also drag Korea's economic growth well below current projections. The Bank of Korea's latest forecast, released late last month, projected economic growth of zero-point-8 percent for this year. That would be the lowest in five years, excluding major crisis periods like the COVID-19 pandemic or past financial shocks. But since the forecast was issued before the U.S. strike, the risk of a deeper downturn remains. Meanwhile, with uncertainty mounting, the government held an emergency inter-agency meeting on Monday. It says it will crack down on unfair oil price hikes and keep domestic fuel prices in check. Authorities also plan to closely monitor financial markets and act quickly if volatility spikes. Key sectors like finance, energy, trade, and logistics will be watched around the clock, with swift responses to any unexpected developments. Shin Se-byuck, Arirang News.

Stock

2025/06/20 20:00

2025. 6. 20. KOREAN STOCK MARKET KOSPI : 3,021.84 ▲44.10 +1.48% KOSDAQ : 791.53 ▲9.02 +1.15% KOSPI200 : 405.32 ▲6.03 +1.51% ASIAN STOCK MARKET NIKKEI225 : 38,403.23 ▼85.11 -0.22% HANG SENG : 23,530.48 ▲292.74 +1.26% SHANGHAI : 3,359.89 ▼2.21 -0.07% WALL STREET (June 19) DOW JONES : CLOSED NASDAQ : CLOSED S&P500 : CLOSED EXCHANGE RATE USD : 1,365.60 (-14.60) JPY : 939.30 (-10.96) CNY : 190.13 (-1.72) EUR : 1,573.17 (-7.50)

Benchmark KOSPI breaks 3,000 for first time in 42 months

2025/06/20 20:00

South Korea's benchmark KOSPI extended its winning streak on Friday to a fifth day, breaking the 3,000-point mark, driven by the upward trend of increased liquidity in the global financial markets. Our correspondent Park Jun-han reports. South Korea's benchmark KOSPI surpassed the 3-thousand points mark on Friday for the first time since December 2021. Closing at 3-thousand-21-point-84, the index jumped 1.48% from Thursday's market close. The last time the KOSPI closed above the 3-thousand mark was on December 28th, 2021, when it ended the day at 3-thousand-20-point-24 points. The KOSPI recorded its highest-ever close on July 6th, 2021, when it climbed past the 3-thousand-3-hundred level. However, since December 28th of that year, the index has failed to close above 3,000, instead fluctuating anywhere between 2-thousand-1-hundred-55-points to 2-thousand-9-hundred-89. Korean stocks have risen over 30% since April's yearly low. Domestically, investor sentiment has improved following the resolution of uncertainties stemming from last December's martial law declaration, which had previously weakened market confidence. "South Korea's shipbuilding and defense stocks rose amid policies associated with the Trump administration. More recently, since the launch of the Lee Jae-myung administration, the market has seen selective gains in AI and securities firms driven stocks, particularly those benefiting from shareholder return policies." With the Lee Jae-myung administration now in office, its stock market-friendly policies are fueling momentum to revitalize the market. President Lee, while visiting the southeastern industrial city of Ulsan on Friday morning, commented on South Korea's recent stock market gains. Globally, although negotiations are still underway, a 90-day suspension of U.S. reciprocal tariffs and the de-escalation of U.S.-China trade tensions following high-level talks boosted the rise of Korean stocks. Yet, since the market's index growth was driven by expectations, further momentum beyond the 3,000 mark may require solid corporate earnings and clear signs of an economic recovery. "I believe stock market-friendly policies should be implemented more swiftly. Investments in areas like AI also need to proceed smoothly to support the growth of related domestic industries. In addition, improvements in external conditions must be backed by a strong export performance and a broader economic recovery at home." After the KOSPI surged past 3,000 for the first time in years, investors are asking: Is this a true rebound — or a brief surge? Park Jun-han, Arirang News.

Diagnosis of S. Korea's economic challenges amid U.S. tariffs and Middle East tensions

2025/06/20 20:00

Welcome to Within The Frame, where we bring the most pressing issues across the globe into focus. I'm Kim Mok-yeon. South Korea's economy is facing increasing challenges, from the impact of U.S. tariffs to escalating tensions in the Middle East. In May, exports turned negative for the first time in four months, with automobile exports to the U.S. dropping over 27 percent. At the same time, the global oil market is seeing volatility due to the Israel-Iran conflict. Domestically, inflation is rising, particularly in food prices, and the Federal Reserve's decision to hold interest rates steady, adds another layer of complexity to the situation. On Within The Frame tonight, we'll explore how these factors are shaping Korea's economic future and what strategies may help navigate these turbulent times. For this, we invite Shin Se-don, Professor, Division of Business Economics at Sookmyung Women's University. Also joining us from Texas is Hwagyun Kim, Professor of Banking and Finance at Texas A&M University, Mays Business School. (Shin) 1. To begin with, due to the fallout from the U.S.-imposed tariff shock, Korea's exports in May declined for the first time in four months. In particular, exports of automobiles—a key export item—plummeted over 27 percent to the U.S. in May. Professor Shin, do you expect export growth to decline further this year? What is your outlook? (Kim) 2. Moving on to another important issue, the bilateral Korea-U.S. tariffs are set to take effect in about three weeks. However, the much-anticipated summit between the two leaders during the G7, which could have influenced tariff negotiations, was cancelled. Professor Kim, in light of this, what kind of strategy should the Korean government be preparing? (Shin) 3. Meanwhile, Japan has already engaged in six rounds of tariff negotiations with the U.S., and a summit between their leaders took place at the G7. Despite this, negotiations between the U.S. and Japan remain at a standstill. Professor Shin, from this, what lessons can Korea draw for its own negotiations with Washington? (Kim) 4. Shifting focus to the international stage, tensions between Israel and Iran have escalated, leading to increased Middle East risks and a sharp rise in global oil prices. Professor Kim, given this context, what is your outlook on oil price volatility moving forward? (Kim) 5. On a related note, the U.S. Federal Reserve recently decided to hold interest rates steady for the fourth consecutive time at the latest FOMC meeting. Professor Kim, what are the key factors behind this decision, and what is your perspective on the Fed's decision? (Shin) 6. While the Fed has kept rates unchanged at the FOMC meeting, it also indicated through its "dot plot" that two additional rate cuts might still be possible this year. Professor Shin, in light of this, what do you think is the reasoning behind this outlook? (Kim) 7. With both U.S. tariffs and heightened Middle East tensions, the burdens on the Korean economy are increasing. With the KOSPI breaking the 3,000-point mark during trading for the first time in three years and five months, Professor Kim, how will the Middle East risks and the Fed's rate freeze impact domestic stock markets? (Shin) 8. Domestic inflation is also concerning. According to a report from the Bank of Korea, food prices have risen 19.1 percent over the past four years—second highest among OECD countries. Professor Shin, how do you assess the current inflationary mood? (Shin) 9. In light of inflation pressure and economic slowdown, the ruling party and government are reportedly preparing an extra budget totaling 35 trillion won. Discussions are also underway about relief measures, including universal cash support. Professor Shin, will these measures help revive livelihood in the economy? (Kim) 10. Meanwhile, Korea's national competitiveness ranking dropped by seven spots from last year to 27th. The Presidential Office has announced a coordinated cross-ministry response to recover competitiveness. Professor Kim, what do you think are the key factors for restoring national competitiveness?

Benchmark KOSPI breaks 3,000 for first time in 42 months

2025/06/20 17:00

Following days of much speculation over whether or not it would, the benchmark KOSPI closed trade on this Friday above the three-thousand mark. Our correspondent Park Jun-han has the closing numbers. South Korea’s benchmark KOSPI surpassed the 3-thousand points mark on Friday for the first time since December 2021. Closing at 3-thousand-21-point-84, the index jumped 1.48% from Thursday’s market close. The last time the KOSPI closed above the 3-thousand mark was on December 28th, 2021, when it ended the day at 3-thousand-20-point-24 points. The KOSPI recorded its highest-ever close on July 6th, 2021, when it climbed past the 3-thousand-3-hundred level. However, since December 28th of that year, the index has failed to close above 3,000, instead fluctuating anywhere between 2-thousand-1-hundred-55-points to 2-thousand-9-hundred-89. Korean stocks have risen over 30% since April's yearly low. Domestically, investor sentiment has improved following the resolution of uncertainties stemming from last December’s martial law declaration, which had previously weakened market confidence. "South Korea’s shipbuilding and defense stocks rose amid policies associated with the Trump administration. More recently, since the launch of the Lee Jae-myung administration, the market has seen selective gains in AI and securities firms driven stocks, particularly those benefiting from shareholder return policies." With the Lee Jae-myung administration now in office, its stock market-friendly policies are fueling momentum to revitalize the market. President Lee, while visiting the southeastern industrial city of Ulsan on Friday morning, commented on South Korea’s recent stock market gains. Globally, although negotiations are still underway, a 90-day suspension of U.S. reciprocal tariffs and the de-escalation of U.S.-China trade tensions following high-level talks boosted the rise of Korean stocks. Yet, since the market's index growth was driven by expectations, further momentum beyond the 3,000 mark may require solid corporate earnings and clear signs of an economic recovery. "I believe stock market-friendly policies should be implemented more swiftly. Investments in areas like AI also need to proceed smoothly to support the growth of related domestic industries. In addition, improvements in external conditions must be backed by a strong export performance and a broader economic recovery at home." After the KOSPI surged past 3,000 for the first time in years, investors are asking: Is this a true rebound — or a brief surge? Park Jun-han, Arirang News.

Producer prices fall 0.4% in May as melon, onion prices plunge

2025/06/20 10:00

South Korea's producer prices saw the sharpest drop in a year and a half last month. According to the Bank of Korea on Friday, the Producer Price Index came at 119-point-6-6 in May, down zero-point-4 percent on-month. It marked a second straight month of decline, and the biggest drop since November 2023. By category, prices for agricultural, forestry, and fishery goods dropped 4-point-4 percent, while industrial goods fell zero-point-6 percent. Among the steepest declines, Korean melons were down over 50 percent, onions, down 43, and diesel prices were nearly 6 percent lower. The central bank attributed the fall to improved weather, which boosted supply and drove down producer prices for fruits and vegetables.

President Lee says it's time for gov't to spend: 20.2 trillion KRW supplementary bill explained

2025/06/20 10:00

South Korea has drawn up its first extra budget under the brand new government with the ultimate goal of stimulating economic recovery. The budget also includes cash handouts to all citizens. Our correspondent Kim Do-yeon explains more. The second round of a supplementary budget bill this year, the first of its kind under Lee Jae Myung's presidency, has been drafted and is set to go to the National Assembly next week. President Lee, presiding over a Cabinet meeting on Thursday, took a final look. The size of this supplementary budget is 30.5 trillion Korean won, or a bit more than 22 billion U.S. dollars. 15.2 trillion of that will be going into boosting the economy through stimulus. 5 trillion will be going to stabilizing people's livelihoods. 10.3 will be for revenue adjustment, for the nation's fiscal situation. This means, 20.2 trillion will be for direct spending by the government with 19.8 trillion being debt. Going into the details 15.2 trillion for economic stimulus will consist of 10.3 trillion of that being cash relief to everyone, in a different form of the recipient's choosing. 1 trillion will go into boosting discounts and other needed aspects. 2.7 trillion will go into support for the construction sector as it's currently one of the hardest hit industries with close links to the employment of working-class citizens. President Lee has been pushing for cash relief to everyone for some time now, since his lawmaker days. The conservative government had been saying a universal payout is not right due to the financial pressure on the nation's fiscal status, and selective support is better. This draft did go with a universal payout but for those who need it, the more they will receive. The top 10-percent, approximately 5.12 million people, will receive a one-time payment of 150,000 Korean won, or around a 100 U.S. dollars. And the biggest group of citizens of around 43 million people will receive the first payment of 150,000 Korean won, but will get an additional 100,000 in the second round. The lower levels will receive more in first-time payments, with the social welfare recipients later getting 500,000 in total As for stabilizing livelihoods, money will be spent on debt relief for small businesses as well as boosting employment and taming inflation. Now, the ball is in the National Assembly's court with the government's draft being transferred on the 23rd. Lawmakers will be reviewing the bill, but with the ruling Democratic Party holding the majority on the floor, the bill won't face many obstacles. Kim Do-yeon, Arirang News.

Stock

2025/06/19 20:00

2025. 6. 19. KOREAN STOCK MARKET KOSPI : 2,977.74 ▲5.55 +0.19% KOSDAQ : 782.51 ▲2.78 +0.36% KOSPI200 : 399.29 ▲0.43 +0.11% ASIAN STOCK MARKET NIKKEI225 : 38,488.34 ▼396.81 -1.02% HANG SENG : 23,237.74 ▼472.95 -1.99% SHANGHAI : 3,362.11 ▼26.70 -0.79% WALL STREET (June 18) DOW JONES : 42,171.66 ▼44.14 -0.10% NASDAQ : 19,546.27 ▲25.18 +0.13% S&P500 : 5,980.87 ▼1.85 -0.03% EXCHANGE RATE USD : 1,380.20 (+10.80) JPY : 950.26 (+5.49) CNY : 191.85 (+1.34) EUR : 1,580.67 (+3.87)

President Lee says it's time for gov't to spend: 20.2 trillion KRW spending supplementary bill explained

2025/06/19 20:00

South Korea has drawn up its first extra budget under the brand new government with the ultimate goal of stimulating economic recovery. The budget also includes cash handouts to all citizens. Our correspondent Kim Do-yeon starts us off. The second round of a supplementary budget bill this year, the first of its kind under Lee Jae Myung's presidency, has been drafted and is set to go to the National Assembly next week. President Lee, presiding over a Cabinet meeting on Thursday, took a final look. The size of this supplementary budget is 30.5 trillion Korean won, or a bit more than 22 billion U.S. dollars. 15.2 trillion of that will be going into boosting the economy through stimulus. 5 trillion will be going to stabilizing people's livelihoods. 10.3 will be for revenue adjustment, for the nation's fiscal situation. This means, 20.2 trillion will be for direct spending by the government with 19.8 trillion being debt. Going into the details 15.2 trillion for economic stimulus will consist of 10.3 trillion of that being cash relief to everyone, in a different form of the recipient's choosing. 1 trillion will go into boosting discounts and other needed aspects. 2.7 trillion will go into support for the construction sector as it's currently one of the hardest hit industries with close links to the employment of working-class citizens. President Lee has been pushing for cash relief to everyone for some time now, since his lawmaker days. The conservative government had been saying a universal payout is not right due to the financial pressure on the nation's fiscal status, and selective support is better. This draft did go with a universal payout but for those who need it, the more they will receive. The top 10-percent, approximately 5.12 million people, will receive a one-time payment of 150,000 Korean won, or around a 100 U.S. dollars. And the biggest group of citizens of around 43 million people will receive the first payment of 150,000 Korean won, but will get an additional 100,000 in the second round. The lower levels will receive more in first-time payments, with the social welfare recipients later getting 500,000 in total As for stabilizing livelihoods, money will be spent on debt relief for small businesses as well as boosting employment and taming inflation. Now, the ball is in the National Assembly's court with the government's draft being transferred on the 23rd. Lawmakers will be reviewing the bill, but with the ruling Democratic Party holding the majority on the floor, the bill won't face many obstacles. Now we have our Kim Do-yeon in the studio to give us more details on this supplementary budget bill. Do-yeon, so the spending vouchers for everyone as you mentioned, had been a hot topic for the nation as it affects every Korean national. Right, Dami. It's something as I've said in my report that President Lee has been pushing for since his opposition leader days. And, as we heard, he believes strongly in the government spending more during these hard times with benefits going to everyone. Also, this is to boost domestic spending. One thing to clarify is that it's not in the form of cash. It's spending vouchers. So there are three ways to receive them. Local district vouchers, a prepaid check card, or directly to your credit or check card. Now, it will be to boost domestic spending, so it's not for those who are going to travel abroad. Also, while the specifics aren't yet set, they're going to have an expiration date. So far, the government has said four months, but that detail will be decided at the National Assembly. On top of this, there will be other discounts to make sure people spend more in Korea. "We aim to achieve both goals: providing swift support through phased payments and tailoring assistance based on income levels. An additional 600 billion won will also be allocated for local gift certificates, bringing the total issuance to a record-high 29 trillion won. The discount rate when purchasing these certificates will also be raised—from a maximum of 10 percent to 15 percent." Now, let's focus on the government's financial status. Some people may be worried about the additional debt. What does the government have to say about that? The government did admit that the debt had risen, and the fiscal balance rose. But take a listen to the 2nd Vice Minister for Economy and Finance. "However, looking at past cases and international comparisons, we don’t see the current level as posing a serious risk just yet. Efforts to ensure fiscal sustainability will continue in parallel." The government says it tried to be careful with the financing for this supplementary budget. It secured 5.3 trillion won by reshuffling spending priorities and another 5.5 trillion won by tapping into available funds and adjusting how much will be issued in foreign exchange bonds. That allowed them to keep additional bond issuance to 19.8 trillion won—minimizing the burden on taxpayers. Still, despite those efforts, the fiscal deficit widened from 3.3% to 4.2% of GDP, and the national debt ratio also inched up. But the Finance Ministry argues that what's more important right now is responding to urgent economic needs.

U.S. Federal Reserve keeps rates steady amid tariff uncertainty

2025/06/19 20:00

Federal Reserve officials held onto their key interest rate yet again on Wednesday, but they still foresee two rate cuts by the end of the year. Moon Ji-young tells us more. The U.S. Federal Reserve kept its key rate unchanged for the fourth straight meeting Wednesday and lowered the country's economic growth outlook. This keeps the rate in the 4-point-two-five to 4-point-five percent range and marks the fourth consecutive rate freeze since Trump took office, despite pressure to make cuts. "What we're waiting for to reduce rates is to understand what will happen with, really, the tariff inflation. And there's a lot of uncertainty about that." So far, inflation has remained relatively tame, near the Fed's target of 2 percent. However, economists warn it may take months for the effects of tariffs to be felt. Inflation has also seen recent upward pressure from rising oil prices driven by the conflict between Israel and Iran. However, Fed officials still foresee two interest rate cuts by the end of this year, the same as they projected in March. The central bank's latest quarterly projections show noticeably weaker growth, higher inflation, and slightly higher unemployment by the end of this year, than it had forecast in March. For this year, Fed officials expect inflation to rise to 3 percent, unemployment to increase to 4-point-5 percent, and growth to slow to 1-point-4 percent. The Fed also projects GDP to grow by 1-point-4 percent in 2025, down from 1-point-7 percent projected in March. "Following growth of 2.5% last year, GDP was reported to have edged down in the first quarter, reflecting swings in net exports that were driven by businesses bringing in imports ahead of potential tariffs." President Donald Trump has publicly criticized Powell for not cutting rates, increasing pressure on the central bank. But the Fed Chairman dismissed criticism, saying "we're in a good place." Meanwhile, this week's decision puts the benchmark rate gap between South Korea and the U.S. at up to 2 percentage points with the Bank of Korea slashing its key rate to 2-point-5 percent in its last meeting in May. On the same day, Bank of Korea Deputy Governor Park Jong-woo noted the Fed Chairman's cautious policy approach, influenced by U.S. tariff policy and divergent views among officials. Speaking at a meeting on macroeconomic issues, he also highlighted the growing uncertainty regarding the future path of U.S. monetary policy. Moon Ji-young, Arirang News.

U.S. Federal Reserve keeps rates steady amid tariff uncertainty

2025/06/19 17:00

For the fourth session in a row the U.S. Federal Reserve is holding its benchmark interest rate steady citing uncertainty over the broader repercussions of the Trump administration's tariff campaign. Moon Ji-young covers this latest decision. The U.S. Federal Reserve kept its key rate unchanged for the fourth straight meeting Wednesday and lowered the country's economic growth outlook. This keeps the rate in the 4-point-two-five to 4-point-five percent range and marks the fourth consecutive rate freeze since Trump took office, despite pressure to make cuts. "What we're waiting for to reduce rates is to understand what will happen with, really, the tariff inflation. And there's a lot of uncertainty about that." So far, inflation has remained relatively tame, near the Fed's target of 2 percent. However, economists warn it may take months for the effects of tariffs to be felt. Inflation has also seen recent upward pressure from rising oil prices driven by the conflict between Israel and Iran. However, Fed officials still foresee two interest rate cuts by the end of this year, the same as they projected in March. The central bank's latest quarterly projections show noticeably weaker growth, higher inflation, and slightly higher unemployment by the end of this year, than it had forecast in March. For this year, Fed officials expect inflation to rise to 3 percent, unemployment to increase to 4-point-5 percent, and growth to slow to 1-point-4 percent. The Fed also projects GDP to grow by 1-point-4 percent in 2025, down from 1-point-7 percent projected in March. "Following growth of 2.5% last year, GDP was reported to have edged down in the first quarter, reflecting swings in net exports that were driven by businesses bringing in imports ahead of potential tariffs." President Donald Trump has publicly criticized Powell for not cutting rates, increasing pressure on the central bank. But the Fed Chairman dismissed criticism, saying "we're in a good place." Meanwhile, this week's decision puts the benchmark rate gap between South Korea and the U.S. at up to 2 percentage points with the Bank of Korea slashing its key rate to 2-point-5 percent in its last meeting in May. On the same day, Bank of Korea Deputy Governor Park Jong-woo noted the Fed Chairman's cautious policy approach, influenced by U.S. tariff policy and divergent views among officials. Speaking at a meeting on macroeconomic issues, he also highlighted the growing uncertainty regarding the future path of U.S. monetary policy. Moon Ji-young, Arirang News.

[On-point] U.S. Fed holds interest rate steady: What this means for the Korean economy

2025/06/19 10:00

The U.S. Federal Reserve left its key interest rate unchanged for the fourth time. For more on this, we have Professor Kim Yong-Jin, Professor at Sogang Business School. Professor Kim, thanks for joining us this morning. 1. The Fed has decided to hold its key interest rate steady, and this is something that was widely expected. What's behind this decision? 2. The Fed indicated that it may cut rates twice this year. What does this imply? 3. Now with the interest rate freeze, what happens next? How will this affect the Bank of Korea's decision next month? 4. How will the Fed's latest decision affect Korean businesses and investors in Korea? 5. How do you think the government should approach trade negotiations with the U.S. to successfully reach a deal before the July deadline? Alright Professor Kim, thank you so much for your insight today. We appreciate it.

U.S. Federal Reserve holds rates steady amid tariff uncertainty

2025/06/19 10:00

The U.S. Federal Reserve has kept its key rate unchanged for the fourth straight meeting in June, citing economic uncertainty stemming from Trump's tariff policy and rising inflation. Moon Ji-young reports. The U.S. Federal Reserve kept its key rate unchanged for the fourth straight meeting Wednesday and lowered the country's economic growth outlook. This keeps the rate in the 4-point-two-five to 4-point-five percent range and marks the fourth consecutive rate freeze since Trump took office, despite pressure to make cuts. "What we're waiting for to reduce rates is to understand what will happen with, really, the tariff inflation. And there's a lot of uncertainty about that." So far, inflation has remained relatively tame, near the Fed's target of 2 percent. However, economists warn it may take months for the effects of tariffs to be felt. Inflation has also seen recent upward pressure from rising oil prices driven by the conflict between Israel and Iran. However, Fed officials still foresee two interest rate cuts by the end of this year, the same as they projected in March. The central bank's latest quarterly projections show noticeably weaker growth, higher inflation, and slightly higher unemployment by the end of this year, than it had forecast in March. For this year, Fed officials expect inflation to rise to 3 percent, unemployment to increase to 4-point-5 percent, and growth to slow to 1-point-4 percent. The Fed also projects GDP to grow by 1-point-4 percent in 2025, down from 1-point-7 percent projected in March. "Following growth of 2.5% last year, GDP was reported to have edged down in the first quarter, reflecting swings in net exports that were driven by businesses bringing in imports ahead of potential tariffs." President Donald Trump has publicly criticized Powell for not cutting rates, increasing pressure on the central bank. But the Fed Chairman dismissed criticism, saying "we're in a good place." Meanwhile, this week's decision has widened the benchmark rate gap between South Korea and the U.S. at up to 2 percentage points with the Bank of Korea slashing its key rate to 2-point-5 percent in its last meeting in May. Moon Ji-young, Arirang News.

Stock

2025/06/18 20:00

2025. 6. 18. KOREAN STOCK MARKET KOSPI : 2,972.19 ▲21.89 +0.74% KOSDAQ : 779.73 ▲4.08 +0.53% KOSPI200 : 398.86 ▲3.68 +0.93% ASIAN STOCK MARKET NIKKEI225 : 38,885.15 ▲348.41 +0.90% HANG SENG : 23,710.69 ▼269.61 -1.12% SHANGHAI : 3,388.81 ▲1.40 +0.04% WALL STREET (June 17) DOW JONES : 42,215.80 ▼299.29 -0.70% NASDAQ : 19,521.09 ▼180.12 -0.91% S&P500 : 5,982.72 ▼50.39 -0.84% EXCHANGE RATE USD : 1,369.40 (+6.70) JPY : 944.77 (+3.22) CNY : 190.51 (+0.75) EUR : 1,576.80 (+0.77)

S. Korea's May auto exports down; eco cars lead domestic sales

2025/06/17 20:00

Korea's overseas shipments of automobiles lost ground in May, but sales of eco-friendly cars exceeded that of gasoline-powered cars for the first time ever. Moon Ji-young has more. South Korea's car exports shrank last month as outbound shipments to the U.S. sharply dropped on Washington's hefty tariffs on imported vehicles. That's according to the latest automotive trends report released by the Ministry of Trade, Industry and Energy on Tuesday, which showed the country's auto exports came at 6-point-2 billion U.S. dollars, down over 4 percent from a year earlier. The figure marks the second consecutive month of decreases, but is the second-highest export value for any May. In terms of volume, exports fell by more than three percent on-year. However, exports of eco-friendly vehicles went up more than 10 percent to record a new monthly high, thanks to strong demand for hybrid cars. The Trade Ministry attributed the overall decrease in auto exports to a base effect from a record monthly figure posted a year earlier and the impacts of the Trump administration's 25 percent tariffs on all imported cars and auto parts. Exports to the U.S. decreased by more than 27 percent on-year in May. The Ministry further explained that this decrease appears to have been influenced by the start of mass local production at Hyundai Motor Group's Metaplant America in the U.S. state of Georgia. "Meanwhile, here at home, sales of eco-friendly cars have increased by 39 percent from the previous year and now exceed sales of gasoline-powered cars for the first time ever." This is driven by strong demand for hybrid cars, with sales rising more than 31 percent year on year, as well as EVs and plug-in hybrids. In terms of domestic production, South Korean carmakers produced 3-point-1 percent fewer vehicles compared to the previous year, recording 359-thousand units due to decreased exports. Moon Ji-young, Arirang News.

KOSPI hovers around the 2,900 mark as uncertainties cause market volatility

2025/06/17 20:00

The benchmark KOSPI hovered around the 29-hundred mark yet again on Tuesday after being so close to breaking the 3-thousand mark. Park Jun-han has the details. South Korea's benchmark KOSPI ended trading on Tuesday at 2-thousand-950-point-3 points. This marks a point-12 percent increase from Monday's market close. The stocks that drove market momentum were South Korea's tech giants, Samsung Electronics and SK hynix. As of 2:15 PM, Samsung Electronics — which makes up about 12.4% of the benchmark index — climbed 2.7% to 58-thousand-900 won, while SK hynix, accounting for around 6.5% of the market, briefly hit an all-time high of 260-thousand won before slipping to 250-thousand won. "The index recently had already moved up while semiconductor stocks lagged. But as AI demand continues to grow, a positive outlook for chip stocks is being rebuilt — particularly around SK hynix, which remains competitive in AI-related memory products, especially high-bandwidth memory." With the KOSPI now at a critical turning point — shifting from the current 2,000 level toward the 3,000 mark — both domestic and global investors are closely monitoring the situation to see whether it can break through and sustain a position above 3,000. Although South Korean stocks have gained momentum to bounce back from early April's yearly low, there are global uncertainties that could bring volatility to the market. The Middle Eastern conflicts between Israel and Iran could significantly impact global stocks and oil prices if the situation escalates. Moreover, on Wednesday, local time, the U.S. Federal Reserve will make a decision on the country's interest rate. Although the market is expecting interest rates to remain unchanged, Fed Chair Jerome Powell's forecast about the country's economy could affect not only the U.S. stock markets but also South Korean stocks. On the domestic front, as the Lee Jae-myung administration prepares a supplementary budget worth around 20 trillion won, or about 14.6 billion dollars, the stock market could experience volatility depending on the scope, funding sources, and market expectations surrounding the plan. Park Jun-han, Arirang News.

Stock

2025/06/17 20:00

2025. 6. 17. KOREAN STOCK MARKET KOSPI : 2,950.30 ▲3.64 +0.12% KOSDAQ : 775.65 ▼-1.61 -0.21% KOSPI200 : 395.18 ▲1.02 +0.26% ASIAN STOCK MARKET NIKKEI225 : 38,536.74 ▲225.41 +0.59% HANG SENG : 23,980.30 ▼80.69 -0.34% SHANGHAI : 3,387.41 ▼1.32 -0.04% WALL STREET (June 16) DOW JONES : 42,515.09 ▲317.30 +0.75% NASDAQ : 19,701.21 ▲294.38 +1.52% S&P500 : 6,033.11 ▲56.14 +0.94% EXCHANGE RATE USD : 1,362.70 (-1.10) JPY : 941.55 (-4.35) CNY : 189.76 (-0.08) EUR : 1,576.03 (+1.93)

S. Korea's May auto exports down; eco cars lead domestic sales

2025/06/17 17:00

Korea's overseas shipments of automobiles lost ground in May and trade officials are linking the decline to a number of factors. Moon Ji-young reports. South Korea's car exports shrank last month as outbound shipments to the U.S. sharply dropped on Washington's hefty tariffs on imported vehicles. That's according to the latest automotive trends report released by the Ministry of Trade, Industry and Energy on Tuesday, which showed the country's auto exports came at 6-point-2 billion U.S. dollars, down over 4 percent from a year earlier. The figure marks the second consecutive month of decreases, but is the second-highest export value for any May. In terms of volume, exports fell by more than three percent on-year. However, exports of eco-friendly vehicles went up more than 10 percent to record a new monthly high, thanks to strong demand for hybrid cars. The Trade Ministry attributed the overall decrease in auto exports to a base effect from a record monthly figure posted a year earlier and the impacts of the Trump administration's 25 percent tariffs on all imported cars and auto parts. Exports to the U.S. decreased by more than 27 percent on-year in May. The Ministry further explained that this decrease appears to have been influenced by the start of mass local production at Hyundai Motor Group's Metaplant America in the U.S. state of Georgia. "Meanwhile, here at home, sales of eco-friendly cars have increased by 39 percent from the previous year and now exceed sales of gasoline-powered cars for the first time ever." This is driven by strong demand for hybrid cars, with sales rising more than 31 percent year on year, as well as EVs and plug-in hybrids. In terms of domestic production, South Korean carmakers produced 3-point-1 percent fewer vehicles compared to the previous year, recording 359-thousand units due to decreased exports. Moon Ji-young, Arirang News.