News
U.S. Fed keeps interest rate steady as Trump's policies incite uncertainty
2025/03/20 17:00
As anticipated 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 on American trade partners. 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.
U.S. Fed keeps interest rate steady as Trump's policies incite uncertainty
2025/03/20 10:00
In line with widespread market expectations, the U.S. Federal Reserve has kept its lending rate steady while acknowledging uncertainties stemming from Trump's tariff policies. Our 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.
Total national debt of S. Korea surpasses 6,200 trillion won
2025/03/20 10:00
South Korea's total national debt has surpassed 6-thousand-2-hundred trillion won, approximately 4-point-7-6 trillion U.S. dollars. On Thursday, the Bank for International Settlements reported that, in Korean won terms, the country's total debt at the end of the third quarter of 2024 had increased by over 4 percent compared to the same period the previous year. Corporate debt is the largest type of debt, followed by household debt and then government debt. Although government debt is the smallest, it saw the highest growth rate, surging by approximately 11 percent. South Korea's total debt surpassed 6-thousand trillion won for the first time at the end of the fourth quarter of 2023.
Fitch lowers U.S. growth forecast for this year from 2.1% to 1.7%
2025/03/19 17:00
Global credit rating agency Fitch has lowered its growth outlook for the U.S. this year. In its latest projection made public on Tuesday the agency forecast the U.S. economy would expand one-point-seven percent down from its earlier estimate of two-point-one percent. It also lowered its outlook for next year to one-point-five percent. Analysts at the agency are linking their revisions to higher risks of a global trade war owing to the Trump administration's tariff campaign which they add will increase inflation in the U.S.
Trump's top economic aide mentions trade deficit with S. Korea
2025/03/19 17:00
And in related news. Yet another U.S. economic policymaker has underscored the presence of alleged trade imbalances between South Korea and the U.S. Shin Ha-young reports. With about two weeks until the announcement of reciprocal tariff plans, a top economic aide to U.S. President Donald Trump mentioned South Korea as a major "trade deficit" country. U.S. National Economic Council Director Kevin Hassett told CNBC on Monday that trade deficits with Europe, China and South Korea have persisted for years, claiming the deficits are attributable to the countries' high tariffs and non-tariff trade barriers. He added that if U.S. trading partners immediately lower all barriers, the negotiations will be over. Since South Korea and the U.S. have a Free Trade Agreement that removes tariffs on most items, Hassett's statement is raising expectations of increased pressure on South Korea to lower non-tariff trade barriers. "The Trump administration is focused on fixing trade imbalances and seems to be taking a one-on-one approach with countries that have large trade deficits. For South Korea, this could mean either imposing tariffs to reduce imports or negotiating to lower barriers so South Korea can import more from the U.S." The expert from the Korea Institute for International Economic Policy emphasized the need for South Korea to review its contributions to the U.S. and assess potential U.S. demands on non-tariff trade barriers. "We need to review our contributions to the U.S. and potential demands from the U.S. on non-tariff trade barriers. However, with many uncertainties, it's too early for negotiations." Meanwhile, during the interview with CNBC, Hassett said there will be "some uncertainty" between "now and April 2nd," referring to the date Trump is set to unveil his reciprocal tariff plans. His comments come as market analysts and business leaders have criticized the sweeping tariff announcements, which have led to volatility in world markets. However, Hassett defended Trump's tariffs against Mexico, Canada and China, calling them "very positive developments" adding things will clear up after April 2nd. Shin Ha-young, Arirang News.
Fitch lowers U.S. growth forecast for this year from 2.1% to 1.7%
2025/03/19 10:00
International credit rating agency Fitch has revised down its growth outlook for the United States due to the risk of a global trade war. In its economic outlook report released on Tuesday, it revised down its growth forecast from two-point-one percent to one-point-seven percent. It also lowered its outlook for 2026, from one-point-seven percent to one-point-five percent. The agency explained a potential global trade war due to the tariff policies of the current U.S. administration is expected to slow U.S. and global growth, while increasing inflation in the United States. It also revised down the 2025 global economic growth forecast from two-point-six percent to two-point-three percent.
Monthly auto exports reach 6.1 billion U.S. dollars in February, up 17.8% y/y
2025/03/18 20:00
On the trade front. Findings for the month of February show Korean automakers noted substantial growth in sales at home and shipments overseas. Our Moon Ji-young covers the latest data. The South Korean auto industry remained strong in February, showing double-digit growth in production, exports and domestic sales compared to the same month last year. 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 surpassed the 6 billion U.S. dollar mark for the first time for any February rising by 17-point-8 percent year-on-year. By export volume, the number of car shipments came to 233 thousand. The export growth in February is attributed to a base effect resulting from an increase in the number of working days, as February 2024 had fewer working days due to the Lunar New Year holiday falling in that month. Despite difficulties in the EV market, eco-friendly car exports experienced a year-on-year increase of 32 percent. While EV exports dipped by 2 percent, hybrid car exports surged by a remarkable 61.7 percent. In terms of domestic production, South Korean carmakers produced 17.1 percent more vehicles, breaking the 350,000 mark for the first time since February 2014. Regarding domestic sales, 14.8 percent more vehicles were sold compared to the same period last year, totaling 133,000. Notably, EV sales increased by a whopping 298 percent year-on-year. The Ministry of Industry attributed this increase to a tax credit that has reduced the individual consumption tax on cars by 30 percent in the first half of the year, as well as the early implementation of EV subsidies announced in mid-January. With the new Trump administration proposing tariffs on automobiles starting next month, Seoul is taking steps to mitigate the impacts of these levies on the South Korean auto industry. The trade ministry announced it would form a dedicated task force to closely monitor the situation and gather opinions from domestic auto firms, and would soon prepare a more detailed response plan. Moon Ji-young, Arirang News.
Monthly auto exports reach 6.1 billion U.S. dollars in February, up 17.8% y/y
2025/03/18 17:00
Findings for the month of February show Korean automakers noted substantial annual growth in factory output sales at home and shipments overseas. Our Moon Ji-young covers the latest data. The South Korean auto industry remained strong in February, showing double-digit growth in production, exports and domestic sales compared to the same month last year. 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 surpassed the 6 billion U.S. dollar mark for the first time for any February --rising by 17-point-8 percent year-on-year. By export volume, the number of car shipments came to 233 thousand. The export growth in February is attributed to a base effect resulting from an increase in the number of working days, as February 2024 had fewer working days due to the Lunar New Year holiday falling in that month. Despite difficulties in the EV market, eco-friendly car exports experienced a year-on-year increase of 32 percent. While EV exports dipped by 2 percent, hybrid car exports surged by a remarkable 61.7 percent. In terms of domestic production, South Korean carmakers produced 17.1 percent more vehicles, breaking the 350,000 mark for the first time since February 2014. Regarding domestic sales, 14.8 percent more vehicles were sold compared to the same period last year, totaling 133,000. Notably, EV sales increased by a whopping 298 percent year-on-year. The Ministry of Industry attributed this increase to a tax credit that has reduced the individual consumption tax on cars by 30 percent in the first half of the year, as well as the early implementation of EV subsidies announced in mid-January. With the new Trump administration proposing tariffs on automobiles starting next month, Seoul is taking steps to mitigate the impacts of these levies on the South Korean auto industry. The trade ministry announced it would form a dedicated task force to closely monitor the situation and gather opinions from domestic auto firms, and would soon prepare a more detailed response plan. Moon Ji-young, Arirang News.
OECD's latest economic outlook projects 'softening' in growth with big changes in trade policies
2025/03/18 10:00
The OECD has yet again signaled a slowdown in South Korea's growth prospects, citing trade tensions and geopolitical uncertainties. Our Moon Hye-ryeon reports. "Steering Through Uncertainty" is what the Organisation for Economic Cooperation and Development is calling the current global economic situation, forecasting a gradual slowdown in global economic growth over the next three years. Its interim economic outlook, published on Monday, anticipates that global economic growth will moderate, projecting figures of 3-point-1 percent for 2025 and 3 percent for 2026. Notably, the growth forecast for this year has been revised downwards by point-two percentage points compared to the previous projection given in December last year. The OECD highlights that while the global economy has remained "resilient," recent economic activity indicators suggest a softening of global growth prospects. Significant changes in trade policies were outlined as a critical concern – as the new Trump administration rolls out sweeping tariffs – warning that these shifts could impede economic growth and contribute to rising inflation. The organization also noted that inflationary pressures persist across numerous nations. Regional variations in economic performance are expected. In the United States, growth is projected to slow due to the implementation of increased tariffs, with forecasts of 2-point-2 percent this year, while China's economy is expected to maintain relatively robust growth, with forecasts of 4-point-8 percent in 2025. However, Canada and Mexico are projected to be severely negatively impacted by the new U.S. tariffs. As for the South Korean economy, it is projected to grow at a subdued pace of 1-point-5 percent this year, and 2-point-2 percent next year. The 2025 South Korea growth projection has also been revised downwards, reflecting the general trend of reduced growth forecasts among major economies, and falls in line with forecasts from other major institutions. The Bank of Korea adjusted its forecast for domestic economic growth this year also to 1-point-5 percent back in February, while the Korea Development Institute revised its forecast to 1-point-6 percent. Going forward, the OECD's policy recommendations advise central banks to navigate potential increases in trade costs and has called for international cooperation to address trade concerns, structural reforms to promote competition, and support for growth in productivity through the integration of artificial intelligence technologies. Moon Hye-ryeon, Arirang News.
OECD's latest economic outlook projects 'softening' in growth with big changes in trade policies
2025/03/17 20:00
The OECD signals a slowdown in the global growth prospects, citing trade tensions and geopolitical uncertainties. The global economic outlook has been dragged down to a little over 3-percent for this year. Our Moon Hye-ryeon has the details. "Steering Through Uncertainty" is what the Organisation for Economic Cooperation and Development is calling the current global economic situation, forecasting a gradual slowdown in global economic growth over the next three years. Its interim economic outlook, published on Monday, anticipates that global economic growth will moderate, projecting figures of 3-point-1 percent for 2025 and 3 percent for 2026. Notably, the growth forecast for this year has been revised downwards by point-two percentage points compared to the previous projection given in December last year. The OECD highlights that while the global economy has remained "resilient," recent economic activity indicators suggest a softening of global growth prospects. Significant changes in trade policies were outlined as a critical concern – as the new Trump administration rolls out sweeping tariffs – warning that these shifts could impede economic growth and contribute to rising inflation. The organization also noted that inflationary pressures persist across numerous nations. Regional variations in economic performance are expected. In the United States, growth is projected to slow due to the implementation of increased tariffs, with forecasts of 2-point-2 percent this year, while China's economy is expected to maintain relatively robust growth, with forecasts of 4-point-8 percent in 2025. However, Canada and Mexico are projected to be severely negatively impacted by the new U.S. tariffs. As for the South Korean economy, it is projected to grow at a subdued pace of 1-point-5 percent this year, and 2-point-2 percent next year. The 2025 South Korea growth projection has also been revised downwards, reflecting the general trend of reduced growth forecasts among major economies, and falls in line with forecasts from other major institutions. The Bank of Korea adjusted its forecast for domestic economic growth this year also to 1-point-5 percent back in February, while the Korea Development Institute revised its forecast to 1-point-6 percent. Going forward, the OECD's policy recommendations advise central banks to navigate potential increases in trade costs and has called for international cooperation to address trade concerns, structural reforms to promote competition, and support for growth in productivity through the integration of artificial intelligence technologies. Moon Hye-ryeon, Arirang News.
High US egg prices lead to smuggling from neighboring countries
2025/03/17 10:00
The United States has been experiencing a significant surge in egg prices, with the average cost reaching 5 U.S. dollars 90 cents per dozen in February. While the price hike is primarily due to a severe avian influenza outbreak, some consumers are attempting to source cheaper eggs from neighboring countries, such as Mexico, where prices average under 2 dollars per dozen. However, U.S. Customs and Border Protection has reported a 36% increase in egg smuggling incidents this fiscal year. Meanwhile, the U.S. has turned to several European countries, including Denmark, for egg imports to curb soaring prices.
U.S. steel and aluminum tariffs: what they mean for South Korea
2025/03/15 12:00
A major trade shift has hit steel and aluminum industries around the world with the Trump administration's new tariffs enacted earlier this week. Joining me in the studio to discuss is our trade correspondent, Moon Hye-ryeon. Welcome, Hye-ryeon. Thank you for having me. So Hye-ryeon, could you walk us through what the new tariffs are and what countries are subject to levies? The new tariffs that rolled out on Wednesday are hitting all steel and aluminum exports to the U.S. with the rate levied at 25 percent. Up until now, the Trump administration's tariffs were targeted at specific countries – Canada, Mexico and China. But these sweeping tariffs on steel and aluminum apply to countries around the world, including South Korea. Previously, such exports from South Korea to the U.S. were duty-free but capped at 2-point-6-3 million tons under a quota system. What impact is this tariff expected to have on the steel and aluminum industries here in South Korea? Now that all shipments will face the tariffs without a quota, this poses both risks and opportunities. As tariffs now apply to top exporters that had formerly enjoyed tariff and quota-free exports to the U.S., South Korea --the fourth largest supplier to the U.S. --may find new openings in the U.S. market. Still, the risks are significant, with intense competition such as cheaper steel products from Southeast Asia, as well as the inclusion of steel and aluminum-derived products – such as bolts, nuts, and springs – under the new tariff scheme. These products are primarily manufactured by small and medium-sized businesses, which have fewer resources to absorb the impact, making them especially vulnerable to financial losses. Shinjin Fasteners is one such company that produces nuts and bolts, with 35 percent of its sales dependent on exports to the U.S. and Europe. "Developing new products to stay competitive isn't easy, especially when it comes to sourcing materials. It's not like there's a set supply from the start --you have to create value and generate demand through product development." Another company, GJ Aluminum, faces the challenges of diversifying its exports. "We're trying to focus more on Europe and Southeast Asia, but the challenge is that our facilities have primarily been set up for the U.S. market and each of these new regions has very different requirements and characteristics." How has South Korea's government responded to these concerns? The government, for its part, has been ramping up efforts to counter these impacts. Acting President Choi Sang-mok outlined measures on Thursday to support such SMEs – ordering ministries to prevent market imbalances from surplus steel as well as designating a task force with the Korea Trade-Investment Promotion Agency to assist companies in navigating the new trade landscape. Meanwhile, the Ministry of Startups and SMEs and the Ministry of Trade, Industry and Energy have each convened meetings with industry insiders this week in order to gauge market reactions and needs. "It looks to be around 1800 domestic firms that are currently exporting to the U.S. We want to move quickly with a survey to get a clearer picture of the expected impact and what kind of targeted support these businesses will need." The Trade Ministry pledged to support exporting firms with a total of 61-point-1 billion Korean won – roughly 42 million U.S. dollars – in export vouchers. This initiative allows SMEs to access services essential for overseas market expansion, including legal consulting and trade certifications. With the recent rise in global trade uncertainties, the government has increased the export voucher budget by nine percent compared to last year. And how is Seoul planning to move forward in the days to come? Moving forward, the government is planning to announce a detailed and comprehensive response strategy sometime this month. During a meeting with industry leaders on Thursday, the Industry Minister highlighted plans to strengthen trade defense mechanisms. "The government is toughening up its trade defenses to crack down on unfair trade practices and boosting the resources of our trade commission to dig into these issues. We also plan to strengthen monitoring of unfair imports." There's also aggressive negotiations with the U.S. with the country's Minister for Trade landing in Washington on Friday for high-level talks. "If we think of this like a test, they must have some kind of grading rubric, right? We need to figure out what that rubric is. Then we need to quickly fix anything we're getting wrong, and we need to convince them of the things that we can argue against." With trade negotiations ongoing, officials stress that both short-term financial aid and long-term structural adjustments will be crucial for the survival and competitiveness of Korean firms in the global market. Right, thanks for the wrap-up, Hye-ryeon. Thanks for having me.
Gov't highlights 'downside risks' to S. Korea's economy for fourth straight month
2025/03/14 20:00
Meanwhile uncertainties over domestic politics and U.S. tariffs continue to weigh heavily on the Korean economy. Our Lee Soo-jin has the latest economic assessment. South Korea's economy is facing growing pressure as domestic demand remains weak and global uncertainties worsen. That's according to the latest economic green book a monthly economic assessment report released by the Finance Ministry on Friday. This also marks the fourth consecutive month that the government stated that the economy faces "growing downside pressure" in its report,.. after first including the phrase in its December green book after the martial law declaration. "We began using the term "economic downward pressure" as uncertainties grew, which can be categorized into two types currently. The first is domestic uncertainty, leading to a decline in consumer sentiment. The second is trade uncertainty from Trump's policies." While the overall assessment was largely reminiscent of last month's, this month's report also highlighted that the growth in exports is slowing. The daily exports average came to 2-point-4 billion U.S. dollars in February, a nearly 6-percent drop compared to the previous year. " Because of the tariffs that are put down by the Trump administration as well as domestic political problems sparked by the Trump administration we're seeing growth in the US slowing down and that is affecting the global economy as well as Korean exports as well." Recovery in domestic demand also remains sluggish as consumption and investment slow. Retail sales, a key measure of consumer spending, in January, fell point-6 percent compared to the previous month as sales of both semi-durable goods and non-durable goods declined. As for retail sales in February, drops in sales at department stores and large supermarkets are expected to have a negative impact, while the rise in credit card transactions and increased auto sales are projected to act as positive factors. Investment also showed a sharp decline, as facility investment in January plunged more than 14 percent on-month, marking the biggest drop since October 2020, due to decreases in investments in machinery such as semiconductor manufacturing and transport equipment. To address ongoing concerns, the government plans to further strengthen support for local businesses affected by U.S. tariffs, and to mitigate trade uncertainties through measures that include establishing a dedicated financial support fund. Lee Soo-jin, Arirang News.
Acting President Choi calls for vigilance on financial volatility
2025/03/14 20:00
Acting President Choi Sang-mok has urged close cooperation among financial authorities to ensure market stability. During a related meeting on Friday, Choi highlighted the possibility of volatility in light of uncertainty over external factors, including the Trump administration's tariff campaign and its broader ripple effects. That being said, he also underscored the importance of a 24-hour monitoring system to track financial and foreign exchange markets to allow for a swift and coordinated response.
Gov't highlights 'downside risks' to S. Korea's economy for fourth straight month
2025/03/14 17:00
Meanwhile uncertainty over domestic politics and uncertainty over U.S. tariffs continue to weigh heavily on the Korean economy. Our correspondent Lee Soo-jin covers the Finance Ministry's latest economic assessment. South Korea's economy is facing growing pressure as domestic demand remains weak and global uncertainties worsen. That's according to the latest economic green book a monthly economic assessment report released by the Finance Ministry on Friday. This also marks the fourth consecutive month that the government stated that the economy faces "growing downside pressure" in its report,.. after first including the phrase in its December green book after the martial law declaration. "We began using the term "economic downward pressure" as uncertainties grew, which can be categorized into two types currently. The first is domestic uncertainty, leading to a decline in consumer sentiment. The second is trade uncertainty from Trump's policies." While the overall assessment was largely reminiscent of last month's, this month's report also highlighted that the growth in exports is slowing. The daily exports average came to 2-point-4 billion U.S. dollars in February, a nearly 6-percent drop compared to the previous year. " Because of the tariffs that are put down by the Trump administration as well as domestic political problems sparked by the Trump administration we're seeing growth in the US slowing down and that is affecting the global economy as well as Korean exports as well." Recovery in domestic demand also remains sluggish as consumption and investment slow. Retail sales, a key measure of consumer spending, in January, fell point-6 percent compared to the previous month as sales of both semi-durable goods and non-durable goods declined. As for retail sales in February, drops in sales at department stores and large supermarkets are expected to have a negative impact, while the rise in credit card transactions and increased auto sales are projected to act as positive factors. Investment also showed a sharp decline, as facility investment in January plunged more than 14 percent on-month, marking the biggest drop since October 2020, due to decreases in investments in machinery such as semiconductor manufacturing and transport equipment. To address ongoing concerns, the government plans to further strengthen support for local businesses affected by U.S. tariffs, and to mitigate trade uncertainties through measures that include establishing a dedicated financial support fund. Lee Soo-jin, Arirang News.
Acting President Choi calls for vigilance on financial volatility
2025/03/14 17:00
Also here on the local front. Acting President Choi Sang-mok has urged close cooperation among financial authorities to ensure market stability. During a related meeting earlier on this Friday Choi highlighted the possibility of volatility in light of uncertainty over external factors including the Trump administration's tariff campaign and its broader ripple effects. That being said he also underscored the importance of a 24-hour monitoring system to track financial and foreign exchange markets to allow for a swift and coordinated response.
Global spot gold price hits record high amid trade war concerns
2025/03/14 10:00
The global spot gold price set a new all-time high on Thursday as uncertainty lingers over U.S. President Donald Trump's trade policies. The April gold futures closing spot price on the New York Mercantile Exchange rose one-point-five percent from the previous day, to close at two-thousand-991-dollars-and-30 cents per ounce as investors sought safer assets. The spot gold price rose around 14 percent this year, following a 27-percent surge in 2024.
S. Korean gov't responds to U.S. steel and aluminum tariffs with support for domestic firms
2025/03/14 10:00
All hands are on deck to protect local Korean businesses from potential disruptions, amid growing uncertainty in global trade. From tightening market monitoring to handing out export vouchers, the government says it's working on a comprehensive response strategy. Moon Hye-ryeon reports. The South Korean government is ramping up efforts to counter the impact of the Trump administration's 25 percent tariffs on steel and aluminum imports, which took effect on Wednesday. Acting President Choi Sang-mok and Industry Minister Ahn Duk-geun outlined measures on Thursday to mitigate the impact on domestic industries – particularly small and medium-sized businesses. At an economic meeting, Choi ordered ministries to prevent market imbalances from surplus steel, and stressed the need for aggressive negotiations with Washington. To facilitate this, the Korea Trade-Investment Promotion Agency has designated a special task force to assist companies in navigating the new trade landscape. Meanwhile, the Ministry of Trade, Industry and Energy has pledged to support over 13-hundred exporting firms with a total of 61-point-1 billion Korean won – roughly 42 million U.S. dollars – in export vouchers. This initiative allows SMEs to access services essential for overseas market expansion, including legal consulting and trade certifications. With the recent rise in global trade uncertainties, the government has increased the export voucher budget by nine percent compared to last year. Minister Ahn also convened a meeting with steel industry leaders at the POSCO Center in Seoul, where he reaffirmed the government's commitment to countering protectionist trade measures and pledged to announce a detailed support plan for domestic steel firms within the month. He highlighted plans to strengthen trade defense mechanisms, such as stricter monitoring of unfair imports and anti-dumping measures, in response to concerns about increased market competition from lower-cost steel producers in Southeast Asia. Recognizing the urgency of the situation, he emphasized that the government is working on a comprehensive response strategy which includes diplomatic efforts through high-level talks with U.S. officials – with the country's Minister for Trade on a visit to Washington to do so. With trade negotiations ongoing, officials stress that both short-term financial aid and long-term structural adjustments will be crucial for the survival and competitiveness of Korean firms in the global market. Moon Hye-ryeon, Arirang News.
S. Korean gov't responds to U.S. steel and aluminum tariffs with support for domestic firms
2025/03/13 20:00
On the trade front. From tightening market monitoring to handing out export vouchers, all hands are on deck to protect local businesses from potential disruptions in light of growing uncertainties stemming from the U.S.' trade war. Moon Hye-ryeon reports. The South Korean government is ramping up efforts to counter the impact of the Trump administration's 25 percent tariffs on steel and aluminum imports, which took effect on Wednesday. Acting President Choi Sang-mok and Industry Minister Ahn Duk-geun outlined measures on Thursday to mitigate the impact on domestic industries – particularly small and medium-sized businesses. At an economic meeting, Choi ordered ministries to prevent market imbalances from surplus steel, and stressed the need for aggressive negotiations with Washington. To facilitate this, the Korea Trade-Investment Promotion Agency has designated a special task force to assist companies in navigating the new trade landscape. Meanwhile, the Ministry of Trade, Industry and Energy has pledged to support over 13-hundred exporting firms with a total of 61-point-1 billion Korean won – roughly 42 million U.S. dollars – in export vouchers. This initiative allows SMEs to access services essential for overseas market expansion, including legal consulting and trade certifications. With the recent rise in global trade uncertainties, the government has increased the export voucher budget by nine percent compared to last year. Minister Ahn also convened a meeting with steel industry leaders at the POSCO Center in Seoul, where he reaffirmed the government's commitment to countering protectionist trade measures and pledged to announce a detailed support plan for domestic steel firms within the month. He highlighted plans to strengthen trade defense mechanisms, such as stricter monitoring of unfair imports and anti-dumping measures, in response to concerns about increased market competition from lower-cost steel producers in Southeast Asia. Recognizing the urgency of the situation, he emphasized that the government is working on a comprehensive response strategy which includes diplomatic efforts through high-level talks with U.S. officials – with the country's Minister for Trade on a visit to Washington to do so. With trade negotiations ongoing, officials stress that both short-term financial aid and long-term structural adjustments will be crucial for the survival and competitiveness of Korean firms in the global market. Moon Hye-ryeon, Arirang News.
S. Korean gov't responds to U.S. steel and aluminum tariffs with support for domestic firms
2025/03/13 17:00
Preparations are well underway to protect Korean businesses big and small from potential disruptions in light of the 25-percent tariffs on steel and aluminium imports into the American market. Our correspondent Moon Hye-ryeon reports. The South Korean government is ramping up efforts to counter the impact of the Trump administration's 25 percent tariffs on steel and aluminum imports, which took effect on Wednesday. Acting President Choi Sang-mok and Industry Minister Ahn Duk-geun outlined measures on Thursday to mitigate the impact on domestic industries – particularly small and medium-sized businesses. At an economic meeting, Choi ordered ministries to prevent market imbalances from surplus steel, and stressed the need for aggressive negotiations with Washington. To facilitate this, the Korea Trade-Investment Promotion Agency has designated a special task force to assist companies in navigating the new trade landscape. Meanwhile, the Ministry of Trade, Industry and Energy has pledged to support over 13-hundred exporting firms with a total of 61-point-1 billion Korean won – roughly 42 million U.S. dollars – in export vouchers. This initiative allows SMEs to support services essential for overseas market expansion, including legal consulting and trade certifications. With the recent rise in global trade uncertainties, the government has increased the export voucher budget by nine percent compared to last year. Minister Ahn also convened a meeting with steel industry leaders at the POSCO Center in Seoul, where he reaffirmed the government's commitment to countering protectionist trade measures and pledged to announce a detailed support plan for domestic steel firms within the month. He highlighted plans to strengthen trade defense mechanisms, such as stricter monitoring of unfair imports and anti-dumping measures, in response to concerns about increased market competition from lower-cost steel producers in Southeast Asia. Recognizing the urgency of the situation, he emphasized that the government is working on a comprehensive response strategy which includes diplomatic efforts through high-level talks with U.S. officials – with the country's Minister for Trade on a visit to Washington to do so. With trade negotiations ongoing, officials stress that both short-term financial aid and long-term structural adjustments will be crucial for the survival and competitiveness of Korean firms in the global market. Moon Hye-ryeon, Arirang News.