News
Economic sentiment highest in 11 months: BOK
2025/06/17 10:00
Meanwhile,.. the country's economic sentiment rose to an 11-month high on the back of a rally in the domestic stock market and the prospects of a second supplementary budget plan. According to the Bank of Korea, the country's News Sentiment Index stood at 108-point-4-3 as of June 13th, recording the highest level since July of last year. The index fell to just above 77 on December 10th, in the wake of the emergency martial law declaration, and briefly rebounded to the 100 mark in January. However, due to concerns over U.S. tariffs, it fell again to the 80-point range before the recent rebound. The BOK releases its NSI figures every Monday, showing the economic sentiment based on economy-related media outlets. A figure above 100, means optimism outweighs pessimism.
June Green Book: Downside pressures persists as tariff concerns incite uncertainties
2025/06/13 20:00
The economy and finance ministry on Friday released its first economic evaluation under the new government. According to the ministry, the South Korean economy continues to face downward pressure. Park Jun-han has the details. The Ministry of Economy and Finance on Friday assessed that downside pressures on the economy continue to persist due to tariff-led uncertainties. This assessment comes in the Ministry's Green Book for June, detailing South Korea's economic trends. The Ministry, however, dropped "increasing" when describing downside pressure on the economy. Globally, the 90-day suspension of reciprocal tariffs and a trade agreement between the U.S. and China have eased some uncertainties. Domestically, a slight increase in consumer and business confidence—following political stabilization and reduced global economic tension—has prevented downside pressures from worsening, though they still persist. "I think when we first used the phrase 'downside pressures,' we were primarily referring to internal uncertainty. Later, we noted that internal risks seemed to be gradually easing, while external risks had grown due to Trump's tariff policies." The Ministry pledged to swiftly implement the supplementary budget approved in May, while simultaneously preparing the second. "The ministry will continue to focus on responding to trade risks, including supporting our businesses affected by the imposition of U.S. tariffs. We will also accelerate the speed of development and implementation of a supplemental spending bill to revitalize the economy, stimulate consumption, and support vulnerable and small businesses." When asked about how Israel's attack on Iran earlier on the same day would impact the economy going forward, the spokesperson said that, regardless of the attack, downside pressure challenges persist. Park Jun-han, Arirang News.
Middle East escalation hits KOSPI and KRW
2025/06/13 20:00
South Korean markets also closed sharply lower on Friday due to escalating tensions in the Middle East, a first loss after seven market days of gains. The benchmark KOSPI slid nearly point-9 percent to finish at 2-thousand-8-hundred-94 --falling back below the 29-hundred mark. On the other hand, as the Middle East crisis is expected to drive up global oil prices and shipping rates, oil stocks and shipping stocks rallied. The Korean won also took a hit, closing at 1-thousand-3-hundred-69-point-6. This is a jump of 10-point-9 won compared to the day before, while it also went beyond the 1-thousand-3-hudrend-70 range during the day.
June Green Book: Downside pressures persists as tariff concerns incite uncertainties
2025/06/13 17:00
The Economy and Finance Ministry's latest economic assessment acknowledges the persistent presence of downward pressure on the local economy but adds the pressure is NOT rising. PARK Jun-han explains. The Ministry of Economy and Finance on Friday assessed that downside pressures on the economy continue to persist due to tariff-led uncertainties. This assessment comes in the Ministry's Green Book for June, detailing South Korea's economic trends. The Ministry, however, dropped "increasing" when describing downside pressure on the economy. Globally, the 90-day suspension of reciprocal tariffs and a trade agreement between the U.S. and China have eased some uncertainties. Domestically, a slight increase in consumer and business confidence—following political stabilization and reduced global economic tension—has prevented downside pressures from worsening, though they still persist. "I think when we first used the phrase 'downside pressures,' we were primarily referring to internal uncertainty. Later, we noted that internal risks seemed to be gradually easing, while external risks had grown due to Trump's tariff policies." The Ministry pledged to swiftly implement the supplementary budget approved in May, while simultaneously preparing the second. "The ministry will continue to focus on responding to trade risks, including supporting our businesses affected by the imposition of U.S. tariffs. We will also accelerate the speed of development and implementation of a supplemental spending bill to revitalize the economy, stimulate consumption, and support vulnerable and small businesses." When asked about how Israel's attack on Iran earlier on the same day would impact the economy going forward, the spokesperson said that, regardless of the attack, downside pressure challenges persist. Park Jun-han, Arirang News.
Stock
2025/06/12 20:00
2025. 6. 12. KOREAN STOCK MARKET KOSPI : 2,920.03 ▲12.99 +0.45% KOSDAQ : 789.45 ▲3.16 +0.40% KOSPI200 : 390.62 ▲0.83 +0.21% ASIAN STOCK MARKET NIKKEI225 : 38,173.09 ▼248.10 (-0.65%) HANG SENG : 24,035.38 ▼331.56 (-1.36%) SHANGHAI : 3,402.66 ▲0.34 (+0.01%) WALL STREET (June 11) DOW JONES : 42,865.77 ▼1.10 (-0.00%) NASDAQ : 19,615.88 ▼99.11 (-0.50%) S&P500 : 6,022.24 ▼16.57 (-0.27%) EXCHANGE RATE USD : 1,358.70 (-16.30) JPY : 945.28 (-1.49) CNY : 189.20 (-2.08) EUR : 1,565.22 (-3.66)
President Lee picked economy as first priority, how will supplementary budget help?
2025/06/12 17:00
A major task of the new administration is to hammer out a supplementary budget to boost spending and to bolster the economy. So where do we stand? Our business correspondent KIM Do-yeon tells us. As President Lee Jae-myung started his term right after winning the election on June 4th, he picked the economy as his number one priority. He, in fact, kicked the task force off as his first executive order has called two meetings so far. This comes against the backdrop of South Korea's economy struggling, with the Korea Development Institute labeling the current situation "subdued." For the first quarter, the nation's economy shrank. The country's gross domestic product from January to March shrank by point-two percent on quarter, unchanged from an estimate in April. During the second meeting the first thing he ordered the task force to look into was a supplementary budget. Plus, President Lee has the backing of the parliament, with the ruling Democratic Party holding the majority to pass with DP lawmakers calling for at least 20 trillion Korean Won or 14.5 billion U.S. dollars. "We'll introduce a supplementary budget to ease the burden on people's daily lives and deliver policies that make a real difference. At the same time, we won't stop investing in South Korea's future." While the specifics are yet to come out, one thing to look out for is the distribution of cash. Lee has been pushing for a universal payment of 250,000 won to everyone. This is something that could help certain industries, especially with hotels and restaurant businesses struggling due to weakened spending. "Providing payments in the form of local currency can help boost the regional economy, so we could see a temporary increase in spending—particularly in sectors like services, lodging, and dining—which may lead to a slight uptick in employment." Meanwhile, taking on prices is another issue. Universal payments could raise concerns over inflation. On the other hand, the Bank of Korea has actually backed the supplementary budget, and it wouldn't affect the inflation too much. In fact, the BOK says a speedy one is necessary. Another expert also said the supplementary budget needs to focus on the construction sector to support the national economy. "In construction, every 1 billion won in revenue creates around 12 jobs. It's an industry where working-class people—those who rely on labor to make a living—benefit the most." In addition, there needs to be investments made to make sure industries struggling from U.S. tariffs can survive the hard times. This includes steel and auto makers. Plus, sectors like AI need consistent development, and funds could be used to make sure the nation's strategic industries don't lag behind. Kim Do-yeon, Arirang News.
Benchmark KOSPI breaks 2,900, hits highest level in 41 months
2025/06/11 20:00
South Korean stocks extended their post-election honeymoon rally on Wednesday. In fact, the benchmark KOSPI soared to an over 3-year high on a foreign buying spree and eased tariff uncertainties. Our Park Jun-han leads our coverage tonight. South Korea's benchmark KOSPI surpassed 2,900 on Wednesday, for the first time in 3 years and 5 months. The KOSPI, which closed below 2,300 on April 9th, has sharply rebounded — gaining over 25 percent to close at just above 2,907. Among stocks showing strong momentum were those in the financial and semiconductor sectors. Globally, easing uncertainties — especially from the de-escalation of U.S.-China tariff tensions following high-level talks — boosted the rise of Korean semiconductor stocks. "Financial groups and such have risen relatively a bit. I think it's fair to say that the semiconductor industry is also taking part in the uptrend due to the improvement in external conditions." President Lee Jae-myung while he was running for the presidency said he was committed to achieving "KOSPI 5,000" by improving corporate governance and eradicating abuses of management control. Now that Lee has taken office, expectations for his administration's economic policies are fueling investor expectations, which is driving the market rally. "Although these policies have not yet been implemented, the administration is considering measures such as a large-scale supplementary budget to stimulate the domestic economy. Also, expectations that amendments to the Korean Commercial Act will strengthen shareholder protections have generally driven an inflow of foreign funds." On Wednesday, President Lee visited the Korea Exchange to discuss how to revitalize the stock market by observing operations. At the exchange, Lee said his administration was reviewing the introduction of systems to detect unfair transactions early. Lee also said he plans to introduce a zero-tolerance policy on stock price manipulation. Such a policy would include clawing back any ill-gotten gains. Park Jun-han, Arirang News.
245,000 jobs added on-year for S. Korea while service sector employment struggles at COVID-19 levels
2025/06/11 20:00
For the first time in over a year, employment expanded in South Korea by over 200-thousand in May. But the expansion was uneven depending on the sector. Our Kim Do-yeon has this report. South Korea saw the largest increase in employment in 13 months, rising for a fifth consecutive month in May. According to Statistics Korea on Wednesday, the number of employed people aged 15 or older in May reached 29-point-1-6 million, up 245 thousand compared to the same period last year. Though the trend had been an incline recently, it's also the first time in over a year the figure went past 200-thousand mark. The same sectors continue to lead the incline, with the same sectors also seeing declines. "By industry, employment increased in sectors such as healthcare and social welfare services, professional, scientific and technical services, and finance and insurance. However, it declined year-on-year in sectors including agriculture, forestry and fisheries, construction, and manufacturing." In fact, the manufacturing sector saw a decline of 67-thousand jobs on-year a smaller decline compared to past months, attributing to overall growth. On the other hand, the accommodation and restaurant industry saw for the first time a decline in employment in over a year. The number of employees in the industry dropped by 67-thousand compared to a year ago, marking the first decline in 15 months. The decrease is the largest since November 2021, when COVID-19 was in full swing, with a drop of 86-thousand. However, there's hope as a supplementary budget is expected with the new Lee Jae-myung administration and the ruling Democratic Party holding majority to support President Lee's motivation. Local currencies or universal cash distribution seem to be the options. "Providing payments in the form of local currency can help boost the regional economy, so we could see a temporary increase in spending—particularly in sectors like services, lodging, and dining—which may lead to a slight uptick in employment." In the meantime for the first time ever, South Korea's workforce aged 60 and over has surpassed 7 million. This comes as younger age groups—except those in their 30s—saw employment declines. With more seniors staying in the labor market amid a rapidly aging population, the overall employment rate for those 15 and older rose to 63-point-8 percent, up point-3 percentage points from a year ago. Kim Do-yeon, Arirang News.
Benchmark KOSPI breaks 2,900, hits highest level in 41 months
2025/06/11 17:00
We start with news about the rally in the local stock market. The benchmark KOSPI soared to its highest in over three years breaking past the 2-thousand-900 mark today. Our correspondent Park Jun-han has the closing numbers. South Korea's benchmark KOSPI surpassed 2,900 on Wednesday, for the first time in 3 years and 5 months. The KOSPI, which closed below 2,300 on April 9th, has sharply rebounded — gaining over 25 percent to close at just above 2,907. Among stocks showing strong momentum were those in the financial and semiconductor sectors. Globally, easing uncertainties — especially from the de-escalation of U.S.-China tariff tensions following high-level talks — boosted the rise of Korean semiconductor stocks. "Financial groups and such have risen relatively a bit. I think it's fair to say that the semiconductor industry is also taking part in the uptrend due to the improvement in external conditions." President Lee Jae-myung while he was running for the presidency said he was committed to achieving "KOSPI 5,000" by improving corporate governance and eradicating abuses of management control. Now that Lee has taken office, expectations for his administration's economic policies are fueling investor expectations, which is driving the market rally. "Although these policies have not yet been implemented, the administration is considering measures such as a large-scale supplementary budget to stimulate the domestic economy. Also, expectations that amendments to the Korean Commercial Act will strengthen shareholder protections have generally driven an inflow of foreign funds." On Wednesday, President Lee visited the Korea Exchange to discuss how to revitalize the stock market by observing operations. At the exchange, Lee said his administration was reviewing the introduction of systems to detect unfair transactions early. Lee also said he plans to introduce a zero-tolerance policy on stock price manipulation. Such a policy would include clawing back any ill-gotten gains. Park Jun-han, Arirang News.
245,000 jobs added on-year for S. Korea while service sector employment struggles at COVID-19 levels
2025/06/11 17:00
For the first time in over a year employment expanded by over 200-thousand in May but the expansion was uneven depending on sector with construction and manufacturing noting substantial declines. Our correspondent Kim Do-yeon has the latest. South Korea saw the largest increase in employment in 13 months, rising for a fifth consecutive month in May. According to Statistics Korea on Wednesday, the number of employed people aged 15 or older in May reached 29-point-1-6 million, up 245 thousand compared to the same period last year. Though the trend had been an incline recently, it's also the first time in over a year the figure went past 200-thousand mark. The same sectors continue to lead the incline, with the same sectors also seeing declines. "By industry, employment increased in sectors such as healthcare and social welfare services, professional, scientific and technical services, and finance and insurance. However, it declined year-on-year in sectors including agriculture, forestry and fisheries, construction, and manufacturing." In fact, the manufacturing sector saw a decline of 67-thousand jobs on-year a smaller decline compared to past months, attributing to overall growth. On the other hand, the accommodation and restaurant industry saw for the first time a decline in employment in over a year. The number of employees in the industry dropped by 67-thousand compared to a year ago, marking the first decline in 15 months. The decrease is the largest since November 2021, when COVID-19 was in full swing, with a drop of 86-thousand. However, there's hope as a supplementary budget is expected with the new Lee Jae-myung administration and the ruling Democratic Party holding majority to support President Lee's motivation. Local currencies or universal cash distribution seem to be the options. "Providing payments in the form of local currency can help boost the regional economy, so we could see a temporary increase in spending—particularly in sectors like services, lodging, and dining—which may lead to a slight uptick in employment." In the meantime for the first time ever, South Korea's workforce aged 60 and over has surpassed 7 million. This comes as younger age groups—except those in their 30s—saw employment declines. With more seniors staying in the labor market amid a rapidly aging population, the overall employment rate for those 15 and older rose to 63-point-8 percent, up point-3 percentage points from a year ago. Kim Do-yeon, Arirang News.
S. Korea sees largest employment increase in 13 months, but concerns remain
2025/06/11 10:00
South Korea saw the largest increase in employment in 13 months, rising for a fifth consecutive month in May. According to Statistics Korea on Wednesday, the number of employed people aged 15 or older in May reached 29.16 million, up 245 thousand compared to the same period last year. Job additions in healthcare and welfare, as well as scientific and technical services, rose by 233 thousand and 117 thousand, respectively. However, sluggish employment in the construction and manufacturing sectors remains, with 13 and 11 consecutive months of year-on-year decline, respectively.
World Bank cuts 2025 global growth forecast to 2.3%, down 0.4%p
2025/06/11 10:00
The World Bank has cut its global growth forecast for this year, citing the impact of escalating trade tensions. It now expects the global economy to grow just 2-point-3 percent, down 0-point-4 percentage points from its January forecasts. The Bank said this would mark the slowest pace since the 2008 financial crisis,.. apart from outright global recessions. By country, the U.S. is projected to grow 1-point-4 percent this year, nearly 1 point lower than earlier forecasts, and half the pace of last year's 2-point-8 percent. China's outlook holds steady at 4-point-5 percent, while the eurozone forecast was trimmed to 0-point-7 percent, down 0-point-3 points.
U.S.-China agree on trade framework to implement Geneva Consensus
2025/06/11 10:00
The U.S. and China have reached an agreement on a trade framework after their second high-level talks. If approved, this will allow them to implement terms agreed in the Geneva Consensus last month, and could resolve Beijing's rare earth export restrictions on Washington. Our Lee Soo-jin reports. The United States and China have agreed on a trade framework that would allow them to implement an agreement reached at the trade talks held in Geneva last month. U.S. Commerce Secretary Howard Lutnick said Wednesday that the U.S. and China have reached a framework to implement the Geneva Consensus, which each negotiating team will present for approval by the leaders of both countries before it is put into effect. This comes after two full days of talks that began on Monday in London. U.S. Treasury Secretary Scott Bessent and Lutnick had already expressed optimism about the negotiations. "I have to go back to Washington to testify before Congress tomorrow. We have had two days of productive talks." "I think we're working on all sorts of change, and I think the talks are going really, really well. The high-level talks between the world's largest economies follow discussions held in Geneva on May 10th and 11th, where the U.S. and China agreed to temporarily slash tariffs. But since those talks, sentiment has soured with both sides accusing the other of breaching the agreement. As tensions escalated, U.S. President Donald Trump and Chinese leader Xi Jinping held a 90-minute phone call last week, during which they agreed to move forward with a new round of trade talks. The U.S. announced strict export controls on advanced semiconductor chip technology and visa cancellations for Chinese students, while China has been slow to lift blocks on shipments of rare earth minerals, a key focus of this second round of talks. Lutnick expressed hope that the framework will help resolve China's rare earth export restrictions. Wall Street's three major indices closed higher on Tuesday, buoyed by optimism from senior U.S. administration officials. The blue-chip focused Dow ended up zero-point-25 percent, the S&P 500 rose zero-point-55 percent, and the tech-heavy Nasdaq gained zero-point-63 percent. Lee Soo-jin, Arirang News.
S. Korea posts US$ 5.7 bil. current account surplus in April, extending two-year streak
2025/06/10 20:00
South Korea's current account remained in the black yet again in April. While solid exports helped support the balance, experts warn that upcoming U.S. tariffs and a slowing global economy could weigh on the surplus going forward. Shin Se-byuck reports. South Korea posted a current account surplus of 5-point-7 billion U.S. dollars in April. That marks 24 consecutive months in the black since May 2023. According to data released by the Bank of Korea on Tuesday, the surplus shrank sharply from the previous month's 9-point-1 billion dollars. But it was still a notable jump from the 1-point-5 billion dollar surplus recorded a year earlier. The decline was mainly driven by a sharp reversal in the dividend income balance, which swung from a 2-point-6 billion dollar surplus in March to a 650 million dollar deficit due to concentrated payouts to foreign investors. April's goods account, the largest component of the current account, posted a surplus of around 9 billion dollars, backed by solid export performance. Exports rose nearly 2 percent on-year to 58-point-6 billion dollars, led by semiconductors and wireless devices. IT exports jumped almost 11 percent, while auto exports fell by just over 4 percent. Imports, meanwhile, fell 5-point-1 percent to nearly 50 billion dollars, largely due to lower global energy prices, including coal and crude oil. The services account remained in deficit, posting a 2-point-8 billion dollar shortfall in April, a wider gap than the previous month, as Korean firms spent more on tech licensing, consulting, and platform services. In the first four months of the year, the cumulative current account surplus reached nearly 25 billion dollars, up almost 7 billion from the same period last year. But one expert pointed out that these figures reflect the period before new U.S. tariffs took effect, and warned the surplus could narrow further in the months ahead. "Lower energy prices may ease imports, but Trump's tariffs could hit exports harder, narrowing the surplus compared to last year." He also noted that, with the global economy slowing, a sharp rise in stock prices is unlikely, and that gains in the primary income account are likely to remain limited, further narrowing the overall surplus. Shin Se-byuck, Arirang News.
S. Korean economy remains weak amid sluggish construction, exports: KDI
2025/06/10 20:00
South Korea's economy continues to be "weak," according to a local think tank which states it's slow construction activity and poor export conditions that are slowing the growth. Our Moon Ji-young reports. A state-run think tank has diagnosed that the South Korean economy remains subdued overall, noting escalating external uncertainties, driven by U.S. tariff hikes. According to the June Economic Trends Report released on Tuesday, the Korea Development Institute states that the country's economy is weighed down by continued weakness in the construction sector and a slowdown in exports. The agency stated that construction investment continued its decline, constraining recovery in domestic demand. Overall production growth is also slowing, with the construction sector notably contributing to this deceleration, posing a significant drag on the economy. Exports also showed weakening momentum, especially in sectors heavily exposed to U.S. tariffs. This included a continued decline in exports to the U.S, with automobile shipments notably falling by 32 percent year on year. In contrast, manufacturing production maintained solid growth, led by semiconductors, with persistent demand supporting robust growth in production, exports, and related equipment investment in this sector. Meanwhile, household and business sentiment showed modest improvement amid easing political uncertainties and progress in trade talks between Washington and Beijing. The Consumer Sentiment Index recovered to the baseline level in May, signaling an easing in the contraction seen since last year. "It seems the situation itself has improved compared to the first quarter. Since interest rate policy is now moving towards an easing stance, I think it might gradually contribute to an improvement in domestic demand." However, the KDI warned that trade-related uncertainty remains high due to further increases in steel and aluminum tariffs and concerns over a potential resurgence of U.S.-China trade tensions. Moon Ji-young, Arirang News.
S. Korea posts US$ 5.7 bil. current account surplus in April, extending two-year streak
2025/06/10 17:00
On a positive note. South Korea's current account remained in the black in April but the surplus stood substantially lower on month amid the U.S.'s tariff campaign. Shin Se-byuck has the latest numbers. South Korea posted a current account surplus of 5-point-7 billion U.S. dollars in April. That marks 24 consecutive months in the black since May 2023. According to data released by the Bank of Korea on Tuesday, the surplus shrank sharply from the previous month's 9-point-1 billion dollars. But it was still a notable jump from the 1-point-5 billion dollar surplus recorded a year earlier. The decline was mainly driven by a sharp reversal in the dividend income balance, which swung from a 2-point-6 billion dollar surplus in March to a 650 million dollar deficit due to concentrated payouts to foreign investors. April's goods account, the largest component of the current account, posted a surplus of around 9 billion dollars, backed by solid export performance. Exports rose nearly 2 percent on-year to 58-point-6 billion dollars, led by semiconductors and wireless devices. IT exports jumped almost 11 percent, while auto exports fell by just over 4 percent. Imports, meanwhile, fell 5-point-1 percent to nearly 50 billion dollars, largely due to lower global energy prices, including coal and crude oil. The services account remained in deficit, posting a 2-point-8 billion dollar shortfall in April, a wider gap than the previous month, as Korean firms spent more on tech licensing, consulting, and platform services. In the first four months of the year, the cumulative current account surplus reached nearly 25 billion dollars, up almost 7 billion from the same period last year. But one expert pointed out that these figures reflect the period before new U.S. tariffs took effect, and warned the surplus could narrow further in the months ahead. "Lower energy prices may ease imports, but Trump's tariffs could hit exports harder, narrowing the surplus compared to last year." He also noted that, with the global economy slowing, a sharp rise in stock prices is unlikely, and that gains in the primary income account are also likely to remain limited, further narrowing the overall surplus. Shin Se-byuck, Arirang News.
S. Korean economy remains weak amid sluggish construction, exports: KDI
2025/06/10 17:00
The South Korean economy remains sluggish amid the prolonged doldrums in the construction sector and slowing exports in light of U.S. tariffs. Now this is according to the latest assessment by a state-run think tank. Our Moon Ji-young has more. A state-run think tank has diagnosed that the South Korean economy remains subdued overall, noting escalating external uncertainties, driven by U.S. tariff hikes. According to the June Economic Trends Report released on Tuesday, the Korea Development Institute states that the country's economy is weighed down by continued weakness in the construction sector and a slowdown in exports. The agency stated that construction investment continued its decline, constraining recovery in domestic demand. Overall production growth is also slowing, with the construction sector notably contributing to this deceleration, posing a significant drag on the economy. Exports also showed weakening momentum, especially in sectors heavily exposed to U.S. tariffs. This included a continued decline in exports to the U.S, with automobile shipments notably falling by 32 percent year on year. In contrast, manufacturing production maintained solid growth, led by semiconductors, with persistent demand supporting robust growth in production, exports, and related equipment investment in this sector. Meanwhile, household and business sentiment showed modest improvement amid easing political uncertainties and progress in trade talks between Washington and Beijing. The Consumer Sentiment Index recovered to the baseline level in May, signaling an easing in the contraction seen since last year. "It seems the situation itself has improved compared to the first quarter. Since interest rate policy is now moving towards an easing stance, I think it might gradually contribute to an improvement in domestic demand." However, the KDI warned that trade-related uncertainty remains high due to further increases in steel and aluminum tariffs and concerns over a potential resurgence of U.S.-China trade tensions. Moon Ji-young, Arirang News.
S. Korea posts US$ 5.7 bil. current account surplus in April, extending two-year streak
2025/06/10 10:00
South Korea logged a current account surplus of 5-point-7 billion U.S. dollars in April, marking the 24th straight month in the black. According to the Bank of Korea on Tuesday, stronger IT exports, including semiconductors, and a drop in energy import costs helped lift the balance. The surplus, however, narrowed from the previous month, when it reached over 9 billion dollars. While the goods balance edged up, the services account saw a wider deficit amid a spike in overseas R&D payments by Korean firms. From January through April, the cumulative surplus came to nearly 25 billion dollars, up almost 7 billion from the same period last year.
Lee calls for measures to curb inflation, orders supplementary budget in speedy manner
2025/06/10 10:00
South Korea's new president Lee Jae-myung kicked off his first full week in office by addressing inflation, and stressing the urgent need for an extra budget to revive the local economy. Our top office correspondent Yoon Jung-min has this report. Noting higher prices cause too much pain to the people, this is how President Lee Jae-myung began the second emergency economic task force meeting: "I heard that prices have gone up sharply recently. Is it true that ramyeon costs 2,000 won each?" The President urged his team to seek out measures to tamp down inflation before they meet again next time. Present at Monday's meeting in Yongsan were newly appointed aides, including Chief of Policy Kim Yong-beom and Senior Secretary for Economic Growth Ha Joon-kyung as well as relevant government officials. "I hope you regard an hour we spend as worth 52-million hours. The impact is that great." The agenda behind closed doors outlined an additional supplementary budget, signaling a shift towards an expansionary fiscal approach at a time when the country is facing a low growth rate for this year, expected to hover around 1-percent, as well as sluggish demand at home. "The President ordered an extra budget to be organized in a speedy manner to revive the economy and boost consumption. Secondly, he urged for priority to be given to the vulnerable and small business owners for support." The National Assembly passed a 13-point-8 trillion-won extra budget bill in May, worth some 10-billion U.S. dollars, and the second batch is expected to be at least 20-trillion won. Details, including the size of the extra budget, have not been disclosed. The newly inaugurated South Korean leader ordered the launch of the emergency economic task force as his first executive order, as soon as he took office last week. Yoon Jung-min, Arirang 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.