News

Gold price surpasses US$ 3,100 for new record high on Mon.

2025/04/01 10:00

The price of gold has soared to a new record high ahead of the announcement of reciprocal tariffs by U.S. President Donald Trump's administration this week. The price of spot gold peaked at $3,128.06 on Monday, continuing a surge that has seen it gain over 18% since the start of the year. Experts say the rise is due to heightened demand as investors seek safe-haven assets amid economic uncertainty and escalating global trade tensions.

All listed stocks in S. Korea available for short selling, bringing short-term volatility

2025/03/31 20:00

Amid unstable global stock markets as well as the resumption of short-selling at home, local stocks were sharply down today. Park Jun-han has the details. Starting Monday, South Korea resumed short selling on its stock market after a 17-month suspension. And for the first time in five years, the country is allowing short selling for all listed stocks. With investors now able to borrow and sell stocks before buying them back later, the market is seeing increased volatility, which has intensified amid falling global stock prices. The benchmark KOSPI, at around 1:30 PM, briefly dropped below 2,480 points. At the market's close on Monday, 3:30 PM local time, the KOSPI closed at around 2,481, down 3 percent from last Friday's market close. On the same day, the value of the U.S. dollar against the Korean won climbed to 1,472.9 won per dollar, up 6.4 won from last Friday's close. This is the highest since March 2009. Short selling involves investors borrowing stocks, selling them at the market price, and later repurchasing them, ideally at a lower price, to return to the lender. "That's what you have in a normal market, in any international market. If it goes too high, you have short sellers to stop it from going too high." To create a safer and fairer stock trading environment and to facilitate the return of short selling, the Korea Exchange is implementing measures such as strengthened penalties for illegal short selling and increased monitoring of transaction activities. Additionally, those who borrow stocks must repay them within 90 days, with an extension of up to a year. "Well, the large complaint that the individual investors had was that larger companies were engaged in naked short selling. That means short selling without borrowed stocks on hand. And then I believe they have now databases for short-selling transactions so that anybody can see that the transactions are done fairly rather than below the table sometimes." Amid short-term market volatility, industry experts emphasize the long-term necessity of short selling in Korea, as it is expected to attract more foreign capital inflow, enhance liquidity, and help investors manage risks. Park Jun-han, Arirang News.

S. Korea, China and Japan reaffirm trade cooperation ahead of U.S. reciprocal tariffs

2025/03/31 17:00

Here in Seoul. Trade Minister Ahn Duk-geun hosted his Japanese and Chinese counterparts this past Sunday for the first trilateral trade talks in over five years aimed at advancing regional partnership amid the threat of U.S. tariffs. Our correspondent Moon Hye-ryeon has more. The trade ministers of South Korea, China, and Japan met in Seoul for the first time in nearly six years and underscored the need for stronger economic ties and pledged to expand trade partnerships amid growing global uncertainties. At the Trilateral Economic and Trade Ministers' Meeting on Sunday, South Korea's Trade Minister Ahn Duk-geun, China's Commerce Minister Wang Wentao, and Japan's Minister of Economy, Trade and Industry Muto Yoji emphasized the importance of a stable global trade system and vowed to strengthen cooperation in key economic sectors. Their discussions came just days before the U.S. government's scheduled announcement of new reciprocal tariffs as the three nations navigate rising protectionist pressures. The meeting was seen as a strategic move to coordinate a response with all three nations facing similar concerns as major U.S. trade deficit partners and potential targets of tariffs. And, as a result, the ministers aligned on the broader goal of preserving a stable international trade system. During the talks, the ministers reaffirmed their commitment to multilateral trade frameworks, supporting reforms at the World Trade Organization and expanding the Regional Comprehensive Economic Partnership to include new members. They also pledged to accelerate negotiations for a high-level trilateral Free Trade Agreement. "It is necessary to strengthen the implementation of RCEP, in which all three countries have participated, and to create a framework for expanding trade cooperation among the three countries through Korea-China-Japan FTA negotiations." While South Korea and China currently have an FTA in place, discussions on a three-way agreement have stalled due to differing economic conditions and national priorities. Beyond trade agreements, the ministers addressed broader economic concerns, committing to stabilizing supply chains and expanding cooperation in green and digital industries. Moon Hye-ryeon, Arirang News.

All listed stocks in S. Korea available for short selling, bringing short-term volatility

2025/03/31 17:00

A short-selling ban that went into effect in November 2023 has been lifted with tougher measures in place to crack down on illegal transactions. Park Jun-han covers this lifting and the stock market's response on this Monday. Starting Monday, South Korea resumed short selling on its stock market after a 17-month suspension. And for the first time in five years, the country is allowing short selling for all listed stocks. With investors now able to borrow and sell stocks before buying them back later, the market is seeing increased volatility, which has intensified amid falling global stock prices. The benchmark KOSPI, at around 1:30 PM, briefly dropped below 2,480 points, declining over 3 percentage points compared to last Friday's market close of 2,557.98. At the market's close on Monday, 3:30 PM local time, the KOSPI closed at 2,481.12, down 76.86 points, or 3.0%, from last Friday's Market close. Short selling involves investors borrowing stocks, selling them at the market price, and later repurchasing them, ideally at a lower price, to return to the lender. "That's what you have in a normal market, in any international market. If it goes too high, you have short sellers to stop it from going too high." To create a safer and fairer stock trading environment and to facilitate the return of short selling, the Korea Exchange is implementing measures such as strengthened penalties for illegal short selling and increased monitoring of transaction activities. Additionally, those who borrow stocks must repay them within 90 days, with an extension of up to a year. "Well, the large complaint that the individual investors had was that larger companies were engaged in naked short selling. That means short selling without borrowed stocks on hand. And then I believe they have now databases for short-selling transactions so that anybody can see that the transactions are done fairly rather than below the table sometimes." Amid short-term market volatility, industry experts emphasize the long-term necessity of short selling in Korea, as it is expected to attract more foreign capital inflow, enhance liquidity, and help investors manage risks. Park Jun-han, Arirang News.

S. Korea fully lifts short-selling ban on Monday

2025/03/31 10:00

South Korea fully lifted its ban on short-selling on Monday. Short-selling is now allowed for all listed firms for the first time since March 2020, when the ban was introduced due to the market crash caused by the COVID-19 pandemic. The ban was partially lifted in May 2021, but temporarily reimposed in November 2023 after a series of naked short-selling violations by global investment banks were discovered. Ahead of the resumption of short-selling, the Korea Exchange has set a new system to detect any illegal practices.

S. Korea’s economy sees 'triple plus' with gains in production, consumption, investment

2025/03/31 10:00

South Korea's economy rebounded in February, with production, consumption, and investment all increasing compared to the previous month. According to Statistics Korea on Monday, the overall industrial output saw an increase of point-6 percent compared to the month before, largely due to gains in the service and service and mining industries. The construction industry returned to an upward trend for the first time in seven months. Retail consumption was up 1.5%, and facility investment jumped by a huge 18.7%. An official from Statistics Korea attributed the overall increase to a base effect resulting from a decline in the previous month, caused by fewer working days due to a long Lunar New Year holiday.

Despite Hyundai's major U.S. investment plan, Trump imposes 25% tariffs on imported cars

2025/03/27 20:30

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 Hyundai Motor Group on Monday announced a sweeping 21 billion dollar investment in the United States, including a new 5 billion dollar steel plant in Louisiana, through 2028. The plan includes investment for the automotive sector, the steel industry, and for future industries and the energy sector. "Hyundai Motors entered the U.S. in 1986. Since then, we have invested over 20 billion dollars and now support more than 570,000 American jobs across all 50 nation states. Today, I'm pleased to announce an additional 21 billion dollars in a new investment over the next four years. Our largest U.S. invest ever.” The announcement comes as U.S. President Donald Trump signals potential 25 percent tariffs on imported cars starting April 2nd and broadens trade pressure on countries with large U.S. trade surpluses. Calling Hyundai a truly great company, the U.S. President expressed excitement. “Hyundai will be producing steel in America and making its cars in America. And as a result, they'll not have to pay any tariffs. You know, there are no tariffs If you make your product in America.” Monday’s announcement made Hyundai the first South Korean company to unveil a major investment plan amid Trump’s tariff threats — raising cautious hopes it could help ease U.S. trade pressure on Seoul. For a deeper discussion on the latest developments, we invite Song Soo-young, Professor of Business and Economics at Chung-Ang University. Welcome. Also joining us from Texas is Hwagyun Kim, Professor of Banking and Finance at Texas A&M University's Mays Business School. Great to have you. 1. (Song) So Prof. Song, Hyundai Motors announced a massive 21 billion dollar-investment in major sectors including automobiles, parts, and steel throughout the next three years. What is the significance of Hyundai’s large-scale investment? And why did Chairman Chung Eui-sun specifically highlight steel plant construction as a core aspect of the investment? 2. (Kim) Regarding Chairman Chung’s investment announcement, President Trump emphasized that it “proves the effectiveness of the tariff policy.” What has been the local response? 3. (Song) Hyundai’s investment is seen as a bold move to directly counter the Trump administration’s tariff pressure. What lessons does this case offer to domestic companies and the government in terms of resolving tariff-related issues? 4. (Kim) However, Hyundai Motor has only avoided the tariff pressure for its vehicles produced locally in the U.S. Since President Trump has announced that 25% tariffs will be imposed on all imported cars starting April 2nd, what kind of countermeasures should be considered in response? 5. (Song) Following Hyundai, will major Korean companies like Samsung Electronics and SK hynix also accelerate investments in the U.S.? Given the uncertainty around receiving subsidies under the Biden administration’s investment terms, further investment might be burdensome. What is your outlook? 6. (Kim) The Trump administration has declared that reciprocal tariffs will be imposed starting April 2nd. Is there a possibility that Korea is included among the so-called “Dirty 15” countries targeted? And how would such tariffs be implemented? 7. (Song) On the other hand, after Chung’s announcement, President Trump stated that “not all new tariffs will be announced on April 2nd” and that “some countries may receive exemptions.” This is a shift from his previous stance that “there will be no tariff exemptions.” Can this be interpreted as a sign of flexibility in his tariff approach? 8. (Kim) Meanwhile, President Trump has encouraged Korea’s participation in the Alaska LNG (liquefied natural gas) project. In relation to this, Alaska Governor Mike Dunleavy visited Korea for discussions. Could Korea’s participation in the Alaska project become a bargaining chip to alleviate tariff pressure? What should the Korean government consider before making a decision? 9. (Song) With the Trump administration’s reciprocal tariff announcement just a week away, newly reinstated Prime Minister Han Duck-soo declared that he would dedicate efforts to safeguarding national interests amid this trade conflict. From Korea’s perspective, what other cards could be offered to the U.S. to avoid or reduce reciprocal tariffs?

S. Korea unveils trade competitiveness and AI investment as 2026 budget priorities

2025/03/25 20:00

South Korea has outlined its priorities for next year's budget, emphasizing industrial and trade competitiveness in response to U.S. trade barriers. The Ministry of Economy and Finance unveiled on Tuesday its 2026 spending guidelines, projecting a four-percent increase to a little over 704-trillion Korean won, just under 480-billion U.S. dollars. Other key priorities include expanding investments in AI and semiconductors, implementing fiscal reforms, and supporting recovery in struggling sectors like construction.

Hyundai announces US$ 21 bil. investment plan in U.S. as executive chair meets Trump

2025/03/25 20:00

Thank you for joining us. I'm Yoon Jung-min. Hyundai Motor has pledged an investment of 21-billion dollars in the U.S. over the next four years. This comes ahead of America's new tariffs that are set to go into effect next week. Lee Seung-jae has the details. Hyundai Motor Group Executive Chairman Chung Eui-sun met with U.S. President Donald Trump at the White House on Monday. There, Chung announced that South Korea's largest automaker will be investing 21 billion U.S. dollars in the United States through 2028. "Hyundai Motors entered the U.S. in 1986. Since then, we have invested over 20 billion dollars and now support more than 570,000 American jobs across all 50 nation states. Today, I'm pleased to announce an additional 21 billion dollars in a new investment over the next four years. Our largest U.S. invest ever." The investment includes 8-point-6 billion dollars for the automotive sector, 6-point-1 billion dollars for the steel industry, components parts and logistics and 6-point-3 billion dollars for future industry sectors and energy. Chung also announced that the company will open a new 8 billion dollar automotive plant in Georgia later this week,.. that will allow its U.S. car production to exceed 1 million units per year. According to the U.S. president, the 21 billion dollar investment will give Hyundai Motor Group a pass from his tariff policies. "Hyundai will be producing steel in America and making its cars in America. And as a result, they'll not have to pay any tariffs. You know, there are no tariffs if you make your product in America." Trump also said on Monday that his administration will announce tariffs on automobiles "over the next few days." His remarks have raised speculation that new tariffs on cars could come before he announces his reciprocal tariffs on April 2nd. Trump also emphasized that Hyundai's massive investment is "clear" evidence that his tariff policy is effective. Lee Seung-jae, Arirang News.

Hyundai announces US$ 21 bil. investment plan in U.S. as executive chair meets Trump

2025/03/25 17:00

Hyundai Motor has pledged an investment of 21 billion U.S. dollars in the U.S. including a 6 billion dollar steel plant in Louisiana. The pledge was made on Monday at the White House with U.S. President Donald Trump linking it to his tariff campaign. Lee Seung-jae has details. Hyundai Motor Group Executive Chairman Chung Eui-sun met with U.S. President Donald Trump at the White House on Monday. There, Chung announced that South Korea's largest automaker will be investing 21 billion U.S. dollars in the United States through 2028. "Hyundai Motors entered the U.S. in 1986. Since then, we have invested over 20 billion dollars and now support more than 570,000 American jobs across all 50 nation states. Today, I'm pleased to announce an additional 21 billion dollars in a new investment over the next four years. Our largest U.S. invest ever." The investment includes 8-point-6 billion dollars for the automotive sector, 6-point-1 billion dollars for the steel industry, components parts and logistics and 6-point-3 billion dollars for future industry sectors and energy. Chung also announced that the company will open a new 8 billion dollar automotive plant in Georgia later this week,.. that will allow its U.S. car production to exceed 1 million units per year. According to the U.S. president, the 21 billion dollar investment will give Hyundai Motor Group a pass from his tariff policies. "Hyundai will be producing steel in America and making its cars in America. And as a result, they'll not have to pay any tariffs. You know, there are no tariffs if you make your product in America." Trump also said on Monday that his administration will announce tariffs on automobiles "over the next few days." His remarks have raised speculation that new tariffs on cars could come before he announces his reciprocal tariffs on April 2nd. Trump also emphasized that Hyundai's massive investment is "clear" evidence that his tariff policy is effective. Lee Seung-jae, Arirang News.

Consumer sentiment falls in March amid concerns over weak domestic demand, sluggish export growth

2025/03/25 17:00

Consumer sentiment fell for the first time in three months this March amid sluggish spending and slowing exports. According to the Bank of Korea on this Tuesday the Composite Consumer Sentiment Index dropped 1-point-8 points on month to 93-point-4 this month. The index retreated to a 2-year low last December following the country's short-lived martial law before rebounding in January and February. A reading below 100 means consumers are more pessimistic than optimistic about the economy.

Hyundai announces US$ 21 bil. investment plan in U.S. as executive chair meets Trump

2025/03/25 10:00

South Korean automaker Hyundai Motor Group says it'll invest a whopping 21 billion dollars into the U.S. through 2028, as part of its strategies and efforts to avoid being hit by Trump's tariffs. Lee Seung-jae has our top story. Hyundai Motor Group Executive Chairman Chung Eui-sun met with U.S. President Donald Trump at the White House on Monday. There, Chung announced that South Korea's largest automaker will be investing 21 billion U.S. dollars in the United States through 2028. "Hyundai Motors entered the U.S. in 1986. Since then, we have invested over 20 billion dollars and now support more than 570,000 American jobs across all 50 nation states. Today, I'm pleased to announce an additional 21 billion dollars in a new investment over the next four years. Our largest U.S. invest ever." The investment includes 8-point-6 billion dollars for the automotive sector, 6-point-1 billion dollars for the steel industry, components parts and logistics and 6-point-3 billion dollars for future industry sectors and energy. Chung also announced that the company will open a new 8 billion dollar automotive plant in Georgia later this week,.. that will allow its U.S. car production to exceed 1 million units per year. According to the U.S. president, the 21 billion dollar investment will give Hyundai Motor Group a pass from his tariff policies. “Hyundai will be producing steel in America and making its cars in America. And as a result, they'll not have to pay any tariffs. You know, there are no tariffs if you make your product in America.” Trump also said on Monday that his administration will announce tariffs on automobiles "over the next few days." His remarks have raised speculation that new tariffs on cars could come before he announces his reciprocal tariffs on April 2nd. Trump also emphasized that Hyundai's massive investment is "clear" evidence that his tariff policy is effective. Lee Seung-jae, Arirang News.

Hyundai, Kia set to surpass 30 million cumulative sales in the U.S. 39 years after entering market

2025/03/24 17:00

Hyundai Motor and Kia Motors are set to hit a new milestone in the U.S. market this year with total car sales soaring past 30 million since entering the American market in 1986. According to the two automakers their combined sales as of February stands at 29-point-3 million cars over the past 39 years. Last year a total of one-point-seven million Hyundai and Kia cars were sold in the U.S. Company officials plan to further expand their presence in the American market by focusing on sports utility vehicles and eco-friendly vehicles.

STOCK

2025/03/21 20:00

2025. 3. 21. KOREAN STOCK MARKET KOSPI : 2,643.13 ▲6.03 +0.23% KOSDAQ : 719.41 ▼5.74 -0.79% KOSPI200 : 355.18 ▲1.68 +0.48% ASIAN STOCK MARKET NIKKEI225 : 37,677.06 ▼74.82 -0.20% HANG SENG : 23,689.72 ▼530.23 -2.19% SHANGHAI : 3,364.83 ▼44.12 -1.29% WALL STREET (MARCH 20) DOW JONES : 41,953.32 ▼11.31 -0.03% NASDAQ : 17,691.63 ▼59.16 -0.33% S&P500 : 5,662.89 ▼12.4 -0.22% EXCHANGE RATE USD : 1,462.70 (+3.80) JPY : 978.23 (-6.22) CNY : 201.63 (+0.07) EUR : 1,584.18 (-5.22)

U.S. to increase egg imports from S. Korea to address egg shortages

2025/03/21 17:00

South Korea is expanding its exports of eggs to the U.S. following its first-ever shipment earlier this month. The U.S. is fighting a severe shortage of eggs caused by bird flu and has been reaching out to international suppliers in countries such as Türkiye and Brazil for egg imports. Egg prices in the U.S. reportedly soared almost 60 percent on year in February despite pledges by the Trump administration to ease costs. What's more restaurants in the U.S. are placing surcharges for dishes that contain eggs fanning greater inflation concerns.

S. Korea's March exports rise led by semiconductors and ships

2025/03/21 17:00

Exports expanded during the first 20 days of March to post 35.5 billion U.S. dollars. According to the Korea Customs Service the latest amount is a surge of 4.5 percent on year and comes in light of strong shipments of ships and semiconductors and greater exports to markets in the U.S., EU and Vietnam. Meanwhile also on this Friday the Trade Ministry hosted talks on export trends and pledged prompt action to address the broader ripple effects of U.S. tariffs on steel and aluminium imports into its market.

[Econ & Biz] Political instability and Trump's protectionist tariff policies: S. Korea's economic growth under threat?

2025/03/20 20:00

The deliberation process at the Constitutional Court takes longer than expected as to the political fate of President Yoon Suk Yeol as it extends into next week. Today, we take a look at its ramifications on the economy. Our economics correspondent Moon Hye-ryeon joins us in the studio. Hye-ryeon, to start off, does the current situation affect South Korea's economic growth projections for the year ahead? As we prepare to wrap up the first quarter of the year, major institutions have come out with economic growth projections for 2025 – and thus far, the outlook looks gloomy. Both the Bank of Korea and the state-run Korea Development Institute have revised their economic growth forecasts downward from their previous projections last November, citing weak domestic demand fueled by political uncertainty. Domestic demand refers to the ​total ​amount ​spent on ​goods and ​services by ​people, ​companies, and the ​government – and low domestic demand can hinder economic growth. In short, everyone is tightening their purse strings, and this was reflected in recent data on consumer sentiment and consumer spending. Consumer sentiment, as measured by the central bank, saw its steepest drop since the COVID-19 pandemic in December with the martial law declaration and subsequent trials. Months down the line, it has yet to recover. So what groups in particular are being hit hard by low domestic demand? Despite the national Seollal holiday in January, which typically boosts spending, consumer spending declined. Rising costs of raw materials and ingredients have only exacerbated the situation, hitting small business owners – particularly restaurants – the hardest. "If political instability drags on, it's hard to predict an economic recovery in the future. So when consumers feel uncertain, they tend to cut back on spending – one of the first things they cut is dining out." This small restaurant, once packed at lunchtime, now sits idle. The owner says sales have plunged since December. "Since December, most reservations have been canceled. At first, sales dropped to about a third of previous levels, but recently, they've plunged to nearly half or even two-thirds." And this is just one of many – according to Statistics Korea, the number of small business owners in the country fell for the first time in January since 2021, alongside a big drop in production in the dining industry. But political instability isn't the only thing placing downward pressure on the country's economy. Tell us how this interplays with other factors. That's right, Jung-min, another big hurdle is the new Trump administration's trade policies. Tariffs levied at a rate of 25 percent now apply to steel and aluminum exports from South Korea to the U.S., and uncertainties surrounding more tariffs to come in April linger. Economists warn that continued political instability can "push back" important economic decisions to be made – not just regarding domestic demand, but also in response to the new Trump administration's protectionist policies which could further strain South Korea's economy. "The uncertainty in the economy will be significantly amplified, and as a result, economic decisions will be pushed back, likely having a considerably negative impact." The government introduced support measures for small business owners and self-employed individuals in December last year, but announced additional measures such as expanding the issuance and usage of Onnuri gift certificates used for purchases at traditional markets last week as challenges persist. As for trade policies, Seoul is pushing for high-level negotiations with Washington, and holding talks with firms to gather industry opinions. However, experts say that a more proactive approach is needed as domestic and international uncertainties converge. "We need to take a more proactive approach if there are U.S. goods or services we plan to purchase, we should buy them in advance, and companies with investment plans should consider moving them up. This could help mitigate the effects of the Trump administration's trade policies. Right now, our economy is facing even greater challenges than in the past, partly due to a lack of strong fiscal policy." Alright, thank you for your report, Hye-ryeon. Thank you for having me.

BOK warns of uncertainties as gov't urges vigilance following Fed's rate freeze

2025/03/20 20:00

The Bank of Korea says the U.S. Fed's rate freeze stands in line with widespread expectations and has warned of mounting risk factors amid geopolitical and trade tensions. Separately, acting President Choi Sang-mok has reiterated calls on economic and financial authorities to maintain close monitoring of markets here and of U.S. trade-related decisions. He also echoed concerns by the central bank about growing external uncertainty over global trade and geopolitical stability given the fresh fighting in the Middle East and continued conflict in Ukraine.

U.S. Fed keeps interest rate steady as Trump's policies incite uncertainty

2025/03/20 20:00

The U.S. Federal Reserve is holding its key rate steady for the second session in a row amid concerns over slower growth and higher inflation as the U.S. adapts to tougher Trump tariffs. Lee Soo-jin reports. The U.S. Federal Reserve has decided to once again keep its benchmark interest rate unchanged, but signaled potential rate cuts in future meetings. In its second monetary policy meeting of the year on Wednesday, the central bank kept its key borrowing rate steady at its current range of 4-point-2-5 percent to 4-point-5 percent. The Federal Open Market Committee has put a pause in its rate cutting cycle since December last year, after carrying out three consecutive reductions. The decision comes as Federal Reserve officials lowered their outlook for economic growth for this year to 1-point-7 percent from 2-point-1 percent in their December projection. " uncertainty today is unusually elevated. As the economy evolves, we will adjust our policy stance in a manner that best promotes our maximum employment and price stability goals." The Fed's goals of maintaining maximum employment and low inflation are often referred to as its "dual mandate." Powell said that the uncertainty comes from the changes that policies, particularly trade,.. but also immigration, fiscal policy and regulation, will bring to the economy. The rate-setting committee, which releases a summary of economic projections after its March, June, September, and December meetings, projected slightly higher unemployment of 4-point-4 percent from 4-point-3 percent by the end of the year. Inflation was also forecast to rise, as personal consumption expenditure, a measure of consumer spending, and core inflation, which excludes energy and food prices, were both revised upward. Powell acknowledged that tariffs have already contributed to the rise in inflation. The Trump administration imposed 25% tariffs on steel and aluminum imports last Wednesday, triggering retaliatory tariffs from Canada and the EU, with reciprocal U.S. tariffs set for April 2nd. But with officials expecting the Fed to implement a total of half a percentage point in rate cuts in 2025, two reductions are likely this year as rate cuts are typically in quarter-point increments. This latest decision keeps the interest rate gap between South Korea and the U.S. at 1-point-75 percentage points, with the Bank of Korea slashing its key interest rate to 2-point-7-5 percent in its last meeting in February. All three major U.S. stock indexes, the Dow Jones, S&P 500, and the Nasdaq, showed an upward trajectory following the Fed's decision. Lee Soo-jin, Arirang News.

BOK warns of uncertainties as gov't urges vigilance following Fed's rate freeze

2025/03/20 17:00

The Bank of Korea says the U.S. Federal Reserve's rate freeze stands in line with widespread expectations and has warned of mounting risk factors amid geopolitical and trade tensions. Separately acting President Choi Sang-mok has reiterated calls on economic and financial authorities to maintain close monitoring of markets here and of U.S. trade-related decisions. He also echoed concerns by the central bank about growing external uncertainty over global trade and geopolitical stability given the fresh fighting in the Middle East and continued conflict in Ukraine.