News

First month of Lee Jae Myung's presidency: economic policy and initial achievements

2025/07/03 19:35

Up next we shed light on the Lee Jae Myung administration's economic initiatives over the past month and the plan ahead. Our Moon Ji-young has details. President Lee has made it clear that his administration's top priority is the urgent recovery of people's livelihoods. This pressing focus on livelihoods stems from a challenging economic forecast that, as one expert recently highlighted, explains the government's strong emphasis on the critical need for immediate action. "Well, the growth rate this year is only expected to be 0.8% by the Bank of Korea, and a lot of international investment banks are predicting that it'll actually be worse. Some are predicting that the growth rate will only be 0.3%. The two main pillars of the Korean economy are exports and domestic consumption, and both seem to be down very much this year." President Lee has emphasized efforts to alleviate economic hardship, noting the swift activation of an emergency task force and the rapid allocation of a 30-point-5 trillion won supplementary budget, urging parliamentary approval to stimulate the economy. Beyond immediate relief, a central theme of the President's address was an unwavering commitment to investing in future-oriented sectors. This includes advanced technology industries like AI and semiconductors, renewable energy initiatives, and the cultural sector. He articulated plans to prepare for a 'KOSPI 5,000 era' by advancing capital markets, aiming to channel capital into productive areas and enable citizens to invest in growing enterprises, thereby increasing national wealth. He also outlined a vision for balanced national development, seeking to overcome regional disparities and foster industrial collaboration between large corporations, SMEs, and startups. Regarding tariff talks with the U.S., President Lee said the government has made utmost efforts on tariff negotiations, but he can't say whether the talks could be concluded by July 8th, a deadline set by U.S. President Donald Trump. Moon Ji-young, Arirang News.

Seoul completes talks over additional K2 tanks exports to Poland on Wednesday

2025/07/03 16:40

With negotiations completed on Wednesday, South Korea is set to export a second batch of K2 tanks to Poland, with the total value of the deal estimated to be more than 6-billion U.S. dollars. Our defense correspondent Kim Bo-kyoung tells us more. South Korea's Hyundai Rotem has completed negotiations over a deal to export additional K2 tanks to Poland, according to the state arms procurement agency on Wednesday. Though the specific size of the contract is yet to be disclosed, it is widely expected to be a deal worth around 6-point-5-billion U.S. dollars --a little less than nine trillion Korean won. This, marks the first "large-scale" arms export deal completed under the new Lee Jae Myung administration, and also, it would be Seoul's largest single arms export contract if the figure above is confirmed. The Defense Acquisition Program Administration said Seoul and Warsaw are currently coordinating to arrange the signing ceremony. With Russia's invasion of Ukraine, there has been a defense spending push in Poland. After signing a framework contract in July 2022, Warsaw signed a series of deals with South Korean defense companies later that year to acquire K2 tanks, K9 self-propelled howitzers, FA-50 light attack aircraft, and the K239 Chunmoo multiple launch rocket system. Following the first-phase contract, second-phase deals were made for the K9 howitzers in 2023, and Chunmoo MLRS in 2024. Though the second-phase contract for the K2 tanks was expected to be signed around the same time as other weapon systems, negotiations took longer, only to be settled this year. Industry sources say, with production facilities to be established in Poland, 117 units out of 180 K2 tanks will be produced by Hyundai Rotem, while the rest will be locally made by Warsaw's state-owned Polish Armaments Group --PGZ. An expert says this deal could further build momentum for Korea's defense industry, especially as NATO members are now committed to raising defense spending to 5 percent of GDP. "They (European nation) had no defense industry over the seven decades so ground military and K-defense industry supported them to have their own self defense capability in the long term in the end, rather than US weapons system who push countries to buy only a weapon but not a copyright system or supporting system." While leveraging strong defense capabilities and cost-effective production, Korea aims to boost defense export momentum in Europe. Kim Bo-kyoung, Arirang News.

Vietnam becomes 2nd country to make trade deal with U.S. before July 9 deadline

2025/07/03 15:35

Vietnam has joined the UK as the only countries to have made a trade deal with the U.S. before the negotiation deadline for tariffs on July 9th. The U.S. says more deals are on the way with a little less than a week to go. Our Kim Do-yeon has more. The U.S. has announced its second major tariff deal since U.S. President Donald Trump announced an increase on tariffs for imported goods on April 2nd. Trump took to Truth Social on Wednesday, where he called the agreement with Vietnam a "great deal." According to his post, Vietnam will pay a 20% tariff on all goods shipped to the U.S., and a 40% tariff on transshipped products, which are goods Vietnam imports from China and then re-exports to America to dodge existing tariffs. He also wrote that in return, Vietnam will grant the U.S. "TOTAL ACCESS" to its markets, eliminating tariffs on American goods. Trump noted that SUVs have a good chance of success in the Vietnamese market. Deputy Treasury Secretary Michael Faulkender on CNBC described the deal as a huge win, adding that more could be announced before the July 9th deadline. He noted that for many countries, the sticking points aren't tariff levels but non-tariff barriers, which often block American products. If those come down, he said, it "reshapes the calculus for U.S. trade." Faulkender also warned that there will be no extension beyond July 9th and that he anticipates an announcement on the tariffs imposed on countries that have not or do not strike a deal. This comes as South Korea has yet to strike an agreement. Despite Trade Minister Yeo Han-koo's trip to Washington last week, the Wall Street Journal reports a deal isn't close. Seoul is seeking relief on U.S. tariffs targeting autos, steel, and aluminum, while U.S. negotiators have concerns over Korea's regulations on digital giants like Google and Coupang. Kim Do-yeon, Arirang News.

S&P 500 hits new all-time high on news of U.S.-Vietnam trade deal

2025/07/03 15:33

The S&P 500 closed Wednesday with yet another all-time high, after U.S. President Donald Trump announced a U.S.-Vietnam trade deal. The index gained zero-point-four-seven percent, closing at 6-thousand-227-point-four-two, to set a new record. Earlier the same day, Trump posted to social media that the U.S. and Vietnam had reached a trade deal that includes a 20 percent tariff on imports from Vietnam. The tech-heavy Nasdaq also closed at a record high, after gaining nearly one percent, to end the trading session at 20-thousand-393-point-one-three.

Stock

2025/07/02 22:41

2025. 7. 2. KOREAN STOCK MARKET KOSPI : 3,075.06 ▼14.59 -0.47% KOSDAQ : 782.17 ▼1.50 -0.19% KOSPI200 : 414.43 ▼1.83 -0.44% ASIAN STOCK MARKET NIKKEI225 : 39,762.48 ▼223.85 -0.56% HANG SENG : 24,221.41 ▲149.13 +0.62% SHANGHAI : 3,454.79 ▼2.96 -0.09% WALL STREET (July 1) DOW JONES : 44,494.94 ▲400.17 +0.91% NASDAQ : 20,202.89 ▼166.84 -0.82% S&P500 : 6,198.01 ▼6.94 -0.11% EXCHANGE RATE USD : 1,358.70 (+2.80) JPY : 945.45 (+1.49) CNY : 189.63 (+0.30) EUR : 1,601.36 (+3.84)

Trump rules out tariff suspension period extension

2025/07/02 22:37

As the clock ticks down on a critical U.S. trade deadline, U.S. President Donald Trump has made clear yet again that no more time will be granted for countries under temporary tariff relief. Our Moon Hye-ryeon has more. With the suspension period on tariffs set to expire soon, U.S. President Donald Trump signaled that he has no plans to extend the deadline, and that new trade penalties for some countries may soon take effect. Speaking to reporters aboard Air Force One on Tuesday, he singled out Japan after taking to social media the day before to criticize Tokyo for refusing to import American rice despite facing a domestic shortage. "So what I'm going to do is I'll write them a letter and say, 'we thank you very much and we know you can't do the kind of things that we need and therefore you pay a 30%, 35% or whatever the numbers that we determine,' because we also have a very big trade deficit with Japan " On the other hand, he said a deal to reduce the 26 percent tariff rate for India to "much less" is on the table, after Indian officials extended a visit to the White House last week. U.S. Treasury Secretary Scott Bessent told Fox News prior to this statement that the two countries are close to making a deal that lowers levies for both parties. India is one of 57 named countries targeted by country-specific mutual tariffs announced back in April, before they were pushed back for a 90-day negotiation period. During that period, Washington has pushed for talks focused on tariff rates, trade imbalances, and non-tariff barriers. Only the UK has been able to negotiate a limited trade deal with the Trump administration so far, accepting a 10 percent U.S. tariff on certain items in exchange for special access to aircraft engines and British beef. Going forward, the Trump administration is reportedly planning meetings with its trade team to set tariff rates for individual countries as the July 9th deadline approaches. The U.S. Director of the National Economic Council revealed on Monday that the U.S. President will review tariff plans for each country, while Bessent warned that tariffs could remain high for countries that do not cooperate. Moon Hye-ryeon, Arirang News.

Hyundai Motor, Kia achieve record U.S. sales in first half of 2025 despite tariffs

2025/07/02 22:36

Hyundai Motor and Kia set a new record by selling over 893-thousand vehicles in the U.S. during the first half of 2025, marking a 9.2 percent increase compared to the same period last year. Eco-friendly vehicle sales grew, driven by a surge in hybrid demand, though electric vehicle sales declined. Despite the impact of U.S. President Donald Trump's tariffs on automobiles, Hyundai and Kia sold over 473-thousand vehicles during the second quarter. This is a 7.9 percent increase from the same period last year — marking their best-ever second-quarter performance.

Ramyeon and seafood lead steepest inflation rate climb in 5 months

2025/07/02 22:36

Consumer prices in June went up 2.2% in June. That's the steepest on-year rise since January. Our correspondent Kim Do-yeon tells us more. Consumer prices in South Korea climbed back to the two-percent range in June marking the fastest pace in five months. According to the data released by Statistics Korea, consumer prices in June increased by 2-point-2 percent year-on-year. The jump comes after last month the on-year percentage dropped below 2 at 1-point-9. "Although the increase in livestock prices has slowed, the decline in agricultural products has narrowed, petroleum products have turned upward, and prices for processed foods and other items, excluding dining out, has risen further — resulting in a 2-point-2 percent year-on-year increase." Processed food prices, in fact, jumped four-point-six percent for the sharpest increase since late 2023. This means bread, coffee, and ham led the gains but one of the most popular processed foods for Korea, ramyeon also jumped. "Once a cheap source for a quick meal, ramyeon prices aren't what they used to be. On-year, prices have jumped 6.9% that's the highest in 21 months. The government explains that this is due to ingredient prices going up." "I think it's really expensive. I don't buy in bulk anymore, and I eat less of it." Seafood prices also saw a notable climb, up seven-point-four percent, with officials pointing to global warming and unstable marine conditions. Consumers feel the difference and need to take advantage of good opportunities. "We're a family of three, and we used to eat a lot of fish. It's too expensive for us now, but I'm here because I heard there's a sale." Meanwhile, oil prices edged up zero-point-three percent, due to the geopolitical tensions in the Middle East. The Finance said that given uncertainties such as weather conditions and volatility in global oil prices, it will make all-out efforts together with related ministries to stabilize consumer prices. In particular, to keep food prices in check, it plans to continue measures such as discounts on agricultural, livestock, and fisheries products, as well as applying quota tariffs on key food ingredients. Kim Do-yeon, Arirang News.

KOREAN EXPORTS HIT RECORD HIGH FOR JUNE

2025/07/02 19:41

Welcome to Wednesday's edition of Press Perspective. It's July SECOND here in Seoul and I'm Min Sunhee. Today we touch upon the latest events on the economic front here in South Korea. For this I have Lee Ji-hoon with international news agency Reuters. Ji-hoon it's good to have you here. I also have Ruy Valdes with Spanish news agency EFE Spain. Ruy welcome back. Ji-hoon, let's start with the rally in the South Korean stock market in recent days and the reasons behind it. Ruy, staying with the momentum from the stock market. South Korea's consumer confidence soared in June. Again, what are the figures and the factors fueling them? And now, Ji-hoon, on the trade front, exports rebounded in the month of June. Do tell us more about this finding and the factors behind them. Ruy, the Trump administration's pause on reciprocal tariffs ends next week. First, how many bilateral deals has the U.S. been able to seal thus far? And second, what's the latest with regard to South Korea's tariff talks with the U.S.? Meanwhile, Ruy, on the domestic front, the Lee administration has highlighted the need for a second supplementary budget this year to bolster the economy and protect livelihoods. Do tell us a bit more about this budget. Ji-hoon, you recently covered the concerns raised by a BOK board member about financial stability. Could you tell us more? Ruy, what can you tell us about President Lee's pick for Finance and Economy Minister? All right.

Trump rules out tariff suspension period extension

2025/07/02 19:37

And the U.S. leader has reaffirmed his resolve against an extension in the pause on country-specific tariffs following his self-imposed deadline next week. Our Moon Hye-ryeon has more. With the suspension period on tariffs set to expire soon, U.S. President Donald Trump signaled that he has no plans to extend the deadline, and that new trade penalties for some countries may soon take effect. Speaking to reporters aboard Air Force One on Tuesday, he singled out Japan after taking to social media the day before to criticize Tokyo for refusing to import American rice despite facing a domestic shortage. "So what I'm going to do is I'll write them a letter and say, 'we thank you very much and we know you can't do the kind of things that we need and therefore you pay a 30%, 35% or whatever the numbers that we determine,' because we also have a very big trade deficit with Japan " On the other hand, he said a deal to reduce the 26 percent tariff rate for India to "much less" is on the table, after Indian officials extended a visit to the White House last week. U.S. Treasury Secretary Scott Bessent told Fox News prior to this statement that the two countries are close to making a deal that lowers levies for both parties. India is one of 57 named countries targeted by country-specific mutual tariffs announced back in April, before they were pushed back for a 90-day negotiation period. During that period, Washington has pushed for talks focused on tariff rates, trade imbalances, and non-tariff barriers. Only the UK has been able to negotiate a limited trade deal with the Trump administration so far, accepting a 10 percent U.S. tariff on certain items in exchange for special access to aircraft engines and British beef. Going forward, the Trump administration is reportedly planning meetings with its trade team to set tariff rates for individual countries as the July 9th deadline approaches. The U.S. Director of the National Economic Council revealed on Monday that the U.S. President will review tariff plans for each country, while Bessent warned that tariffs could remain high for countries that do not cooperate. Moon Hye-ryeon, Arirang News.

BOK expects extra budget to boost S. Korean economy by 0.2% points

2025/07/02 19:35

The Bank of Korea believes the government-proposed supplementary budget will boost South Korea's economic growth by 0-point-2 percentage point this year. Speaking at the European Central Bank Forum in Portugal on Tuesday Governor Rhee Chang-yong also revealed that the BOK remains in a rate-cutting cycle after lowering rates by one percentage point since last October. He nonetheless stressed that the timing and size of future rate cuts will take into account financial stability risks including rising household debt.

Ramyeon and seafood lead steepest inflation rate climb in 5 months

2025/07/02 19:35

On the economic front. Inflation here in Korea picked up pace in June rising at its fastest rate since the start of this year. Our correspondent Kim Do-yeon covers this rise in rate and the reasons behind it. Consumer prices in South Korea climbed back to the two-percent range in June marking the fastest pace in five months. According to the data released by Statistics Korea, consumer prices in June increased by 2-point-2 percent year-on-year. The jump comes after last month the on-year percentage dropped below 2 at 1-point-9. "Although the increase in livestock prices has slowed, the decline in agricultural products has narrowed, petroleum products have turned upward, and prices for processed foods and other items, excluding dining out, have risen further — resulting in a 2-point-2 percent year-on-year increase." Processed food prices, in fact, jumped four-point-six percent for the sharpest increase since late 2023. This means bread, coffee, and ham led the gains but one of the most popular processed foods for Korea, ramyeon also jumped. "Once a cheap source for a quick meal, ramyeon prices aren't what they used to be. On-year, prices have jumped 6.9% that's the highest in 21 months. The government explains that this is due to ingredient prices going up." "I think it's really expensive. I don't buy in bulk anymore, and I eat less of it." Seafood prices also saw a notable climb, up seven-point-four percent, with officials pointing to global warming and unstable marine conditions. Consumers feel the difference and need to take advantage of good opportunities. "We're a family of three, and we used to eat a lot of fish. It's too expensive for us now, but I'm here because I heard there's a sale." Meanwhile, oil prices edged up zero-point-three percent, due to the geopolitical tensions in the Middle East. The Finance said that given uncertainties such as weather conditions and volatility in global oil prices, it will make all-out efforts together with related ministries to stabilize consumer prices. In particular, to keep food prices in check, it plans to continue measures such as discounts on agricultural, livestock, and fisheries products, as well as applying quota tariffs on key food ingredients. Kim Do-yeon, Arirang News.

Processed food leads steepest inflation rate climb in 5 months

2025/07/02 11:34

Consumer prices in South Korea climbed back to the two percent range in June marking the fastest pace in five months. According to the data released by Statistics Korea, consumer prices in June increased by 2-point-2 percent year-on-year. This was led by processed food prices jumping four-point-six percent for the sharpest increase since late 2023. Bread, coffee, and ham led the gains while the price of ramyeon surged nearly seven percent. Seafood prices also saw a notable climb up seven-point-four percent with officials pointing to global warming and unstable marine conditions. Meanwhile, oil prices edged up zero-point-three percent reflecting geopolitical tensions in the Middle East.

Stock

2025/07/01 22:40

2025. 7. 1. KOREAN STOCK MARKET KOSPI : 3,089.65 ▲17.95 +0.58% KOSDAQ : 783.67 ▲2.17 +0.28% KOSPI200 : 416.26 ▲1.66 +0.40% ASIAN STOCK MARKET NIKKEI225 : 39,986.33 ▼501.06 -1.24% HANG SENG : CLOSED SHANGHAI : 3,457.75 ▲13.32 +0.39% WALL STREET (June 30) DOW JONES : 44,094.77 ▲275.50 +0.63% NASDAQ : 20,369.73 ▲96.27 +0.47% S&P500 : 6,204.95 ▲31.88 +0.52% EXCHANGE RATE USD : 1,355.90 (+5.90) JPY : 943.96 (+5.84) CNY : 189.33 (+0.77) EUR : 1,597.52 (+13.97)

S. Korea posts highest exports for June in history

2025/07/01 22:40

South Korea's exports made a rebound last month, in fact, posting the highest figures for any June in history, thanks to brisk chip and car shipments. Our Park Jun-han leads us off tonight. Exports in June reached an all-time high of 59-point-8 billion U.S. dollars, up 4-point-3 percent from a year earlier, according to data released on Tuesday by the Ministry of Trade, Industry and Energy. Imports rose 3-point-3 percent to 50-point-72 billion dollars, resulting in a trade surplus of 9-point-08 billion dollars. Among the country's 15 major export items, six showed growth. Notably, semiconductors fueled this, marking a historic 15 billion dollars in June — up 11-point-6 percent — and continuing a four-month upward trend. This helped overseas shipments of semiconductors reach 73-point-3 billion dollars for the first half of 2025, the highest-ever performance over that period. "Previously, market demand for semiconductors was driven by mobile devices, but it has now shifted to AI and data centers. Strong memory sales — particularly high-bandwidth memory — and a surge in AI data center investment are the fundamental drivers behind the recent growth in semiconductor exports." Automobile shipments also hit an all-time high for June at 6-point-3 billion dollars, marking a 2-point-3 percent increase from a year earlier. Robust deliveries were driven by high EU demand for electric vehicles, and a whopping 67-point-9 percent surge in used car exports to 670 million dollars. By region, June exports saw growth in seven of its nine major trading regions, excluding the United States and China. Although exports to the United States and China saw a slight decrease of point-5 percent and 2-point-7 percent , respectively, exports to regions such as the European Union and the Middle East saw a significant increase of over at least 14 percent. The economic expert stated that the drop in exports to the United States and China reflects a shift in the global trading order. "The drop in exports after Trump's tariff hikes is a major setback, especially since exports were expected to rise. South Korea exports intermediate goods to China, which China then ships as final products to the U.S., so tariffs on China hit us too. As existing markets shrink, we naturally look for new ones — leading to a shift in the trading order, with more exports heading outside the U.S. and China." In the meantime, Trade Minister Ahn Duk-geun said the government plans to respond proactively to the immediate challenges in the Korea-U.S. negotiations and will soon prepare export support measures — such as trade financing and the identification of alternative markets — to minimize the negative impact on industries. Park Jun-han, Arirang News.

S. Korea braces for U.S. tariffs with automakers exposed the most

2025/07/01 22:34

The record-high export figures from June are a relief for now, but chip and car exports the backbone of South Korea's economy may soon be challenged following the end of the Trump administration's tariffs grace period. So, how to brace for the potential impact? Our Kim Do-yeon reports. The stakes couldn't be higher, as South Korea's heavy dependence on exports — especially to the United States — leaves its core industries vulnerable. With a July 8th deadline fast approaching, Seoul is racing to secure a deal that shields its automakers and semiconductor producers from hefty new tariffs. "I believe Korea needs to emphasize that its economic growth leads to more factories and jobs being created in the United States, and use that to steer negotiations in a direction that benefits both countries." Recent moves by Hyundai Motor Group underscore that point, with the company pledging over 21 billion dollars in investments across the U.S. over the next three years. The move perhaps testifies to experts' claims that autos are the most exposed. Under Section 232 of the U.S. Trade Expansion Act, Washington currently slaps a 25 percent tariff on imported vehicles and auto parts — a duty both Korea and Japan have been pushing to reduce. "Among all the tariffs Korea faces from the U.S. right now, the most critical issue is the auto sector. If this isn't resolved, we're likely to see significant damage — not just for finished cars, but also for parts, steel and aluminum, since all these tariffs are heavily concentrated on automobiles." Without a breakthrough, Korea's automakers and a web of suppliers could suffer severe losses. Some experts suggest that ramping up local manufacturing in the U.S. may be the most immediate way to cushion the blow. "By using production facilities over there, we can effectively offset tariffs on parts as well. So at this point, I think expanding and maximizing manufacturing operations in the U.S., rather than producing everything domestically, is actually the best alternative we have." But they caution this could mean fewer jobs and contracts for Korea's own factories and parts makers. That's why experts say tariffs will ultimately need to be tackled at the negotiating table. They point out that South Korea's shipbuilding capacity could serve as leverage — while even adjustments to defense cost-sharing might come into play. Kim Do-yeon, Arirang News.

S. Korea posts highest exports for June in history

2025/07/01 19:41

We start on the trade front as findings for the month of June show exports hitting an all-time high for the month driven by cars and chips. Our correspondent Park Jun-han reports. Exports in June reached an all-time high of 59-point-8 billion U.S. dollars, up 4-point-3 percent from a year earlier, according to data released on Tuesday by the Ministry of Trade, Industry and Energy. Imports rose 3-point-3 percent to 50-point-72 billion dollars, resulting in a trade surplus of 9-point-08 billion dollars. Among the country's 15 major export items, six showed growth. Notably, semiconductors fueled this, marking a historic 15 billion dollars in June — up 11-point-6 percent — and continuing a four-month upward trend. This helped overseas shipments of semiconductors reach 73-point-3 billion dollars for the first half of 2025, the highest-ever performance over that period. "Previously, market demand for semiconductors was driven by mobile devices, but it has now shifted to AI and data centers. Strong memory sales — particularly high-bandwidth memory — and a surge in AI data center investment are the fundamental drivers behind the recent growth in semiconductor exports." Automobile shipments also hit an all-time high for June at 6-point-3 billion dollars, marking a 2-point-3 percent increase from a year earlier. Robust deliveries were driven by high EU demand for electric vehicles, and a whopping 67-point-9 percent surge in used car exports to 670 million dollars. By region, June exports saw growth in seven of its nine major trading regions, excluding the United States and China. Although exports to the United States and China saw a slight decrease of point-5 percent and 2-point-7 percent , respectively, exports to regions such as the European Union and the Middle East saw a significant increase of over at least 14 percent. The economic expert stated that the drop in exports to the United States and China reflects a shift in the global trading order. "The drop in exports after Trump's tariff hikes is a major setback, especially since exports were expected to rise. South Korea exports intermediate goods to China, which China then ships as final products to the U.S., so tariffs on China hit us too. As existing markets shrink, we naturally look for new ones — leading to a shift in the trading order, with more exports heading outside the U.S. and China." In the meantime, Trade Minister Ahn Duk-geun said the government plans to respond proactively to the immediate challenges in the Korea-U.S. negotiations and will soon prepare export support measures — such as trade financing and the identification of alternative markets — to minimize the negative impact on industries. Park Jun-han, Arirang News.

S&P 500, Nasdaq hit new all-time highs for 2nd straight day

2025/07/01 19:35

Wall Street rallied this past Monday bolstered by widespread belief that the Trump administration will reach tariff deals ahead of next week's deadline. The tech-heavy NASDAQ hit a new high after gaining over 96 points to close trade at 20-thousand-3-hundred-69-point-7. Similarly the S&P 500 reached a new record after rising over 31 points to end its session on Monday at above 6-thousand-2-hundred-4. The overall market optimism follows Canada's removal of a tax targeting American tech firms that had earlier prompted U.S. President Donald Trump to call off bilateral trade talks. Those talks are now set to resume.

S. Korea braces for U.S. tariffs with automakers exposed the most

2025/07/01 19:34

Now as mentioned earlier the deadline for country-specific U.S. tariffs is fast approaching. That being said my colleague Kim Do-yeon spoke to a number of scholars here for their thoughts on an effective South Korean trade strategy. Do take a listen. The stakes couldn't be higher, as South Korea's heavy dependence on exports — especially to the United States — leaves its core industries vulnerable. With a July 8th deadline fast approaching, Seoul is racing to secure a deal that shields its automakers and semiconductor producers from hefty new tariffs. "I believe Korea needs to emphasize that its economic growth leads to more factories and jobs being created in the United States, and use that to steer negotiations in a direction that benefits both countries." Recent moves by Hyundai Motor Group underscore that point, with the company pledging over 21 billion dollars in investments across the U.S. over the next three years. The move perhaps testifies to experts' claims that autos are the most exposed. Under Section 232 of the U.S. Trade Expansion Act, Washington currently slaps a 25 percent tariff on imported vehicles and auto parts — a duty both Korea and Japan have been pushing to reduce. "Among all the tariffs Korea faces from the U.S. right now, the most critical issue is the auto sector. If this isn't resolved, we're likely to see significant damage — not just for finished cars, but also for parts, steel and aluminum, since all these tariffs are heavily concentrated on automobiles." Without a breakthrough, Korea's automakers and a web of suppliers could suffer severe losses. Some experts suggest that ramping up local manufacturing in the U.S. may be the most immediate way to cushion the blow. "By using production facilities over there, we can effectively offset tariffs on parts as well. So at this point, I think expanding and maximizing manufacturing operations in the U.S., rather than producing everything domestically, is actually the best alternative we have." But they caution this could mean fewer jobs and contracts for Korea's own factories and parts makers. That's why experts say tariffs will ultimately need to be tackled at the negotiating table. They point out that South Korea's shipbuilding capacity could serve as leverage — while even adjustments to defense cost-sharing might come into play. Kim Do-yeon, Arirang News.

Trump to meet with trade team this week to set tariff rates: White House

2025/07/01 11:38

With the U.S. set to end its tariff pause next Wednesday, President Donald Trump is expected to hold meetings with his trade team this week to discuss pending deals and set country-specific rates. Our Kim Bo-kyoung tells us more. With the July 9th tariff pause deadline approaching, U.S. President Donald Trump is reportedly planning meetings with his trade team this week to set tariff rates for individual countries. This, according to White House press secretary Karoline Leavitt during a briefing on Monday. "He is going to set the rates for many of these countries if they don't come to the table to negotiate in good faith. And he is meeting with his trade team this week to do that." This echoes Director of the National Economic Council, Kevin Hassett, who said in an interview that there will be a marathon meeting as soon as the "One Big Beautiful Bill Act" passes before Independence Day on the Fourth of July. While saying Trump will review tariff plans one country at a time, he added that the number of deals in hand is in the double digits, with a framework for negotiations in place similar to what was used to strike a deal with the UK last month. Treasury Secretary Scott Bessent also warned countries to cooperate during an interview with Bloomberg TV. Though there are countries that are negotiating in good faith with the U.S., he said, they should be aware that the tariffs could spring back to April 2nd levels, if the deal does not get across the line. Warnings have also been directed at specific countries. Trump, in a post on Truth Social, said Washington would be sending Tokyo a letter, while threatening to impose higher tariffs on Japanese exports to the U.S. over Japan's unwillingness to buy American-grown rice despite a massive rice shortage. Specific details of what the letter might contain have not been disclosed. Kim Bo-kyoung, Arirang News.