News

Trump clarifies there's no full "tariff exception" on electronics from China

2025/04/14 17:00

U.S. tariff exemptions on electronic devices are temporary in nature and a separate set of tariffs will be in place for semiconductors and smartphones in the near future. Lee Seung-jae has our top story. U.S. President Donald Trump and his key trade officials on Sunday made it clear that his administration's newly announced exemptions for reciprocal tariffs on electronic products would be partially or completely reversed in the coming weeks. After a technical guidance issued late Friday, Washington issued an exemption on select electronics, such as smartphones, laptops, personal computers, servers, and semiconductor equipment. Not only does this ease the burden on Samsung Electronics and Apple, it also means a possible exemption from some of the levies on Chinese imports. However,.. Trump took to his social media page on Sunday to clarify, saying tariffs would still be imposed on Chinese goods, specifically the existing 20 percent fentanyl tariffs. Trump also stressed that the U.S. administration is taking a look at semiconductors and the "WHOLE ELECTRONICS SUPPLY CHAIN" in upcoming National Security Tariff investigations. According to U.S. Commerce Secretary Howard Lutnick, while there may be some tariff exemptions on select electronics now, a separate tariff on semiconductors is coming. "So what he's doing is he's saying they're exempt from the reciprocal tariffs, but they're included in the semiconductor tariffs, which are coming in probably a month or two. So these are coming soon." Speaking to CNN on Sunday, White House National Economic Council director Kevin Hassett said that items subject to Section 232 of the Trade Expansion Act have always been excluded from the reciprocal tariffs, and a separate investigation will be conducted to determine the necessary measures to protect the United States. He added that the tariff investigation into semiconductors has to do with broader concerns of U.S. dependence on Chinese-made imports. Hassett said that there is a "very uncomfortable amount of Chinese input" in U.S. weapons systems, stressing the importance of Section 232 of the Act. Lee Seung-jae, Arirang News.

Gov't to provide US$ 6 bil. to support export companies

2025/04/11 20:00

The government is poised to provide over nine-trillion won, about six-billion U.S. dollars in financial support for export businesses. The plan was announced during a meeting led by Finance Minister Choi Sang-mok on Friday. The package includes loans at lower rates and crucial funding for operations. A dedicated task force will also be set up to address changes in supply chains.

Gov't to provide US$ 6 bil. to support export companies

2025/04/11 17:00

The government is poised to provide over nine trillion won about six billion U.S. dollars in financial support for export businesses. The plan was announced during a meeting led by Finance Minister Choi Sang-mok on this Friday. The package includes loans at lower rates and crucial funding for operations. A dedicated task force will also be set up to address changes in supply chains.

Recent economic Green Book points to heightened uncertainties and sluggish domestic demand as downside pressures

2025/04/11 17:00

The Finance Ministry's April assessment of the Korean economy affirms the persistent presence of risk factors including lackluster domestic consumption and U.S. import duties. Park Jun-han covers the latest findings. The finance ministry's latest economic report points to a sluggish recovery in domestic demand and growing global uncertainty from Washington's tariffs as key downside risks. This assessment comes in the ministry's Green Book, a monthly report that outlines the trends in the country's economy. According to the ministry, while the impeachment of former President Yoon Suk Yeol has reduced some internal uncertainty, external risks are growing due to the U.S. tariffs. "The 90-day moratorium has eased some of the pressure on our economy and companies, but the 10% tariff rate is still in effect. And then steel, automobiles, those are also subject to item-specific tariffs, so there is downside pressure." In the Green Book, there were some signs indicating a slowdown in domestic spending. The country's Consumer Sentiment Index dropped from February's 95.2 points to 93.4 in March. Also, preliminary GDP data shows that construction investment in the fourth quarter of 2024 fell 4.5 percent compared to the previous quarter. Year-on-year, construction investment was down 6.5 percent. The ministry vowed full support to combat economic uncertainties and downside pressures. It said it will continue to promote a strengthened economic recovery, including providing support for jobs, construction, and small businesses. At the same time, the ministry will make every effort to respond to trade risks, such as supporting Korean companies affected by the imposition of U.S. tariffs, and expediting the supplementary budget to strengthen industrial competitiveness. Park Jun-han, Arirang News

U.S. consumer prices see first monthly decline in nearly 5 years

2025/04/11 10:00

Also in the United States, consumer prices fell by 0.1% in March, marking the first monthly decline in nearly five years. The decrease was primarily driven by a 6.3% drop in gasoline prices and reduced costs for used vehicles, airline fares, and hotel accommodations. The annual inflation rate eased to 2.4%, its lowest since September 2021, while core inflation, excluding food and energy, rose by just 0.1%. However, economists caution that this relief may be temporary, with new tariffs expected to exert upward pressure on prices in the coming months.

Wall Street sees sell-off one day after major gains due to U.S.-China trade conflict

2025/04/11 10:00

The New York Stock Exchange plunged on Thursday, just a day after Trump announced a 90-day pause for reciprocal tariffs that drove massive gains. The Dow Jones Industrial Average fell two-point-five percent from the previous trading session to close under the 40-thousand mark. The S&P 500 fell more than 3 percent, while the tech-heavy Nasdaq also dropped more than 4 percent from the previous trading session. Wall Street saw major sell-offs due to recession concerns amid the escalating U.S.-China trade conflict.

Where is S. Korea's economy headed post-Yoon's impeachment ruling?

2025/04/10 20:00

Welcome to Within The Frame, where we bring the most pressing issues across the globe into focus. I'm Kim Mok-yeon. South Korea is navigating a complex moment for its economy and markets. Following the impeachment ruling on former President Yoon Suk-yeol, the nation saw a brief dip in the dollar-won exchange rate and a slight easing of market volatility, reflecting hopes that domestic uncertainty might begin to fade. But that window of calm has been narrow. A fresh wave of global trade tensions — sparked by the Trump administration's announcement of 34% reciprocal tariffs on China — has reignited concerns across global markets. Beijing has responded with matching tariffs, and the Korean won has now climbed back above 1,460 against the dollar, with some analysts warning of further upside pressure. All of this comes just ahead of a snap presidential election scheduled within 60 days, adding another layer of potential volatility. To help us understand what these overlapping events mean for Korea's economy, markets, and policy direction, we're joined by Lee Yoon-soo, professor of Economics at Sogang University in the studio. Welcome. Also joining us online is Min Joo Kang, senior economist at ING. Thank you for joining us. (LEE) 1. Let's start with Prof.Lee. President Yoon's impeachment ruling was seen as the resolution of one of the biggest recent domestic political uncertainties. In your view, how has this affected the Korean economy so far? (KANG) 2. Now to Ms. Kang. Looking back at the impeachments of Roh Moo-hyun and Park Geun-hye, what financial market trends typically followed such political events? In what ways does the current situation differ — especially considering today's global economic environment? (LEE) 3. Following the ruling, the won-dollar exchange rate briefly dipped to 1,430, suggesting a moment of relief. But it quickly surged back above 1,470 due to rising global trade tensions. What does this sharp reversal tell us about the relative impact of domestic political stabilization versus external economic shocks? (KANG) 4. Now that the 1,470 level has been breached, with markets eyeing the psychological threshold of 1,500, how do you assess the risk of the won crossing that line? What short-term triggers should we be paying attention to? (LEE) 5. In response to recent volatility, Korea's top economic policymakers convened emergency F4 meetings. For those unfamiliar with the process, could you walk us through the key points of their action plan? (KANG) 6. As an economic expert, do you think these measures were adequate to restore market confidence — or is there a need for more proactive and sustained steps in the near term? (KANG) 7. One of the biggest external factors now is the return of a Trump administration and its aggressive tariff policy. With reciprocal 34% tariffs already imposed on China, with more being threatened, how might this new round of trade conflict affect Korea's export-dependent economy? (LEE) 8. Given this rising uncertainty, Prof.Lee, what advice would you offer to institutional investors or Korean exporters looking to hedge or manage exposure to tariff risks? (LEE) 9. Looking ahead, a snap presidential election will take place within the next 60 days. How much additional uncertainty could this introduce into the markets? What are investors most keen to see in terms of the next administration's economic policy direction? (KANG) 10. Considering all of these developments — domestic political shifts, global trade tensions, currency volatility — what's your overall outlook for Korea's economic trajectory in the second half of the year? Are we heading into a more stable phase, or should we be bracing for more turbulence?

90-Day Tariff Freeze: How Korea should weigh its trade approach

2025/04/10 17:00

The country-specific U.S. tariffs are on hold for now but the baseline 10-percent tariff on all foreign-origin goods as well as the 25-percent tariff on cars and steel imports into the American market remain in place. So what have been the ripple effects of these tariffs on South Korea thus far? Our correspondent Lee Soo-jin takes a look. This is just one of over 100 tariff-related inquiries the Korea Trade-Investment Promotion Agency now receives daily, a sharp jump from just 20 before U.S. President Donald Trump's tariffs. But while the 90-day pause on reciprocal tariffs offers Korea temporary relief, existing duties remain a challenge. The 10-percent baseline tariff that went into effect on April 5th remains in place, and the 25-percent duties on items like automobiles and steel are not covered by the 90-day grace period. And starting May 3rd, a 25-percent tariff on auto parts will also go into effect. "Auto parts suppliers are facing significant disruption. Some sub-parts required for manufacturing are still being imported from Korea. So even if vehicle assembly happens locally, the impact of increased tariffs on imported car parts is still unavoidable." But as of now, markets are seeing a recovery. A buy-side sidecar was triggered Thursday morning for the first time in over eight months, as the KOSPI 200 futures jumped more than 5 percent from the previous session, just days after a sell-side sidecar was activated on Monday, also for the first time in eight months. A buy-side sidecar was also activated for the KOSDAQ during morning trade for the first time since August last year when the futures and the stock index each rose more than the 6 percent and 3 percent thresholds. The market rebound extended through the day, with the KOSPI and the KOSDAQ indexes both closing up at around 6 percent. And the 90-day pause provides Korea a chance to strengthen its trade strategy. "With the United States not only trade and tariff but also shipbuilding, energy investment in Alaska gas pipe and defense cost-sharing is expected to be discussed comprehensively." As one of the Trump administration's key energy priorities is fossil fuels, it has repeatedly urged Korea to join the Alaska LNG project. In response, South Korea's Foreign Ministry issued a research tender on Thursday to explore ways to expand U.S. oil and LNG imports. Shipbuilding, where Korea is a global leader, is also emerging as a key area of cooperation, following Trump's executive order to rebuild the U.S. shipbuilding industry, citing national security and competition with China. Lee Soo-jin, Arirang News.

Wall Street climbs on news of Trump's 90-day tariff pause

2025/04/10 17:00

As expected Wall Street rallied following news of a 90-day pause in U.S. tariffs on its trade partners. The Dow Jones Industrial Average on Wednesday surged 7-point-8 percent to close at 40-thousand-6-hundred-8-point-4. The tech-heavy Nasdaq soared over 12 percent to end its session at 17-thousand-1-hundred-24-point-9. Global crude prices also rose. On the New York Mercantile Exchange futures for May delivery for West Texas Intermediate gained over 4 percent while the June delivery for Brent Crude also jumped over 4 percent on the ICE Futures Exchange.

Wall Street climbs on news of Trump's 90-day tariff pause

2025/04/10 10:00

Wall Street reacted positively to the news of Trump's 90-day tariff pause. The Dow Jones Industrial Average on Wednesday rose 7-point-8-7 percent, or over 2-thousand-962 points, to close at 40-thousand-608-point-4-5. The tech-heavy Nasdaq soared over 12 percent, up over 1-thousand-857 points from the previous trading session, to close at 17-thousand-124-point-9-7. Global crude prices also rose on the news of the tariff pause. On the New York Mercantile Exchange, futures for May delivery for West Texas Intermediate rose more than 4 percent from the previous trading session, while the June delivery for Brent Crude also climbed over 4 percent on the ICE Futures Exchange.

S. Korea's stocks surge with tariff pause, buy-side sidecar activated for KOSPI 200 futures

2025/04/10 10:00

South Korea's stock market is surging, boosted by the pause in U.S. tariffs. As of 9:02 AM on Thursday, the KOSPI stood at 2-thousand-415-point-39, up more than five percent from the previous session, triggering a buy-side sidecar for the first time in more than eight months at 9:06 AM. A sidecar is activated when the KOSPI 200 futures index rises or falls by 5 percent or more and stays there for at least a minute. The tech-heavy KOSDAQ also showed a large jump of more than four percent.

Employment in Mar. up by 193,000; sharp decline in construction and manufacturing

2025/04/09 20:00

The Korean labor market is holding steady with employment expanding in March, growing by almost 200-thousand from a year ago, but that expansion remains uneven. Moon Ji-young explains. South Korea’s job market saw robust growth in March, but challenges persist, particularly in the construction and manufacturing sectors, along with youth employment. According to Statistics Korea’s employment report released on Wednesday, the number of employed people aged 15 or older reached almost 28-point-6 million in March, marking a year-on-year increase of 193-thousand. This gain marks the third consecutive month of growth. By industry, the health and social welfare sector led the job gains, followed by public administration, defense, and social security, as well as the finance field. However, construction saw the largest year-on-year drop in jobs since data collection began in 2013, marking a continuous decline for eleven consecutive months. The manufacturing sector also recorded its most significant decline since November 2020, reflecting a ninth straight month of falls in employment. Some experts forecast that manufacturing, the backbone of the domestic economy, could see a further decline in jobs this year, as export growth slows due to a potential trade war triggered by U.S. tariffs. "Due to the shock from tariffs, our product exports may decline, leading to a faster reduction in job opportunities. Since most of what we sell consists of manufactured goods, this could result in a reduction of decent jobs in the sector." By age group, employment for those aged 60 years and older primarily led the job growth, adding 365-thousand year-on-year. In contrast, the number of employed individuals aged 15 to 29 dropped by 206-thousand. The employment rate for young adults stood at 44.5 percent, marking the lowest monthly record for any March since 2021. With this latest data, Finance Minister Choi Sang-mok expressed concerns regarding sluggish job growth, particularly in export-driven industries such as manufacturing, during an economic officials' meeting on Wednesday. To address the volatility in the trade market, the government has committed to a supplementary budget of 10 trillion won, or roughly 6.7 billion dollars. Moon Ji-young, Arirang News.

Tariffs take toll on South Korea; KOSPI falls below 2,300 for first time in 17 months

2025/04/09 20:00

Korea's benchmark KOSPI fell below the 23-hundred mark on Wednesday in the wake of the major U.S. tariffs that went into effect. Markets elsewhere also took a hit. Bae Eun-ji has the details. South Korea's benchmark KOSPI has dipped below the 2,300 points, for the first time in almost a year and half. The KOSPI index closed at 2-thousand-293-point-7 on Wednesday, down 1-point-7-4 percent from the day before. The sharp decline comes after it already lost more than 5 percent in a single day on Monday. Over the course of three days, the benchmark index has lost 139-point-7 trillion Korean won in market value, which is more than 94 billion dollars. The country's tech-heavy KOSDAQ also slid more than 2-percent, to finish at 643-point-3-9. The local currency also fell,.. with the won-dollar rate briefly declining to its lowest since the global financial crisis more than 16 years ago. The Korean won dropped to 1,484 per dollar on Wednesday, the lowest since March 2009. And it wasn't just South Korea that saw sharp declines on Wednesday. In neighboring countries, Japan's Nikkei 225 lost almost 4 percent, while Taiwan's benchmark stock index also shed nearly 5-point-8 percent. Meanwhile, U.S. stocks also continued to drop amid tariff fears. The S&P 500 fell sharply on Tuesday, to close below 5-thousand points for the first time in almost a year. It has now lost 5-point-8-3 trillion dollars in value, for its steepest four days of losses since the index was created in the 1950s. Apple shares have fallen more than 20 percent since last week's tariff announcement, wiping out 770 billion dollars in market cap over the past four days. This was mainly because Apple is considered as one of the companies most exposed to the trade war, due to its heavy reliance on China clearly showing that the current uncertainty around tariffs is overwhelming. Bae Eun-ji, Arirang News.

ADB projects S. Korea's 2025 economic growth at 1.5%, down 0.5% from December forecast

2025/04/09 17:00

The South Korean economy is projected to grow 1-point-5 percent this year. This is according to the Asian Development Bank in its latest projection which is lower than the two-percent growth forecast made back in December. The bank cited a host of internal and external factors as reasons behind its downward revision. Domestically high interest rates household debt and political uncertainty were underscored as risk factors while internationally uncertainty over global demand weighed on the bank's outlook for South Korea. Pundits meanwhile believe a further cut in growth forecast may be possible as this recent report by the bank did NOT take into account U.S. tariffs on Korean exports.

Tariffs fear rocks local markets, won-dollar exchange rate surpassing 1,487 won at one point

2025/04/09 17:00

Local financial markets were quick to respond to the start of U.S. tariffs. The benchmark KOSPI closed at 2-thousand-2-hundred-93-point-7 on this Wednesday down 1-point-7 percent from its previous session. This is the first time in 17 months that the KOSPI has dropped below the 2-thousand-300 level. Also on this Wednesday the Korean currency weakened further against the U.S. dollar trading at 1-thousand-4-hundred-84-point-1 won per greenback the highest close since the global financial crisis in March 2009. At one point during trade today the foreign exchange rate touched 1-thousand-4-hundred-87 won against the U.S. dollar.

Employment in Mar. up by 193,000; sharp decline in construction and manufacturing

2025/04/09 17:00

Meanwhile the Korean labor market is holding steady with employment expanding yet again in March growing by almost 200-thousand on year BUT that expansion remains uneven. Our Moon Ji-young explains. South Korea’s job market saw robust growth in March, but challenges persist, particularly in the construction and manufacturing sectors, along with youth employment. According to Statistics Korea’s employment report released on Wednesday, the number of employed people aged 15 or older reached almost 28-point-6 million in March, marking a year-on-year increase of 193-thousand. This gain marks the third consecutive month of growth. By industry, the health and social welfare sector led the job gains, followed by public administration, defense, and social security, as well as the finance field. However, construction saw the largest year-on-year drop in jobs since data collection began in 2013, marking a continuous decline for eleven consecutive months. The manufacturing sector also recorded its most significant decline since November 2020, reflecting a ninth straight month of falls in employment. Some experts forecast that manufacturing, the backbone of the domestic economy, could see a further decline in jobs this year, as export growth slows due to a potential trade war triggered by U.S. tariffs. "Due to the shock from tariffs, our product exports may decline, leading to a faster reduction in job opportunities. Since most of what we sell consists of manufactured goods, this could result in a reduction of decent jobs in the sector." By age group, employment for those aged 60 years and older primarily led the job growth, adding 365-thousand year-on-year. In contrast, the number of employed individuals aged 15 to 29 dropped by 206-thousand. The employment rate for young adults stood at 44.5 percent, marking the lowest monthly record for any March since 2021. With this latest data, Finance Minister Choi Sang-mok expressed concerns regarding sluggish job growth, particularly in export-driven industries such as manufacturing, during an economic officials' meeting on Wednesday. To address the volatility in the trade market, the government has committed to a supplementary budget of 10 trillion won, or roughly 6.7 billion dollars. Moon Ji-young, Arirang News.

S. Korea announces US$ 1.3 bil. support package for auto industry amid U.S. tariff pressures

2025/04/09 20:00

Also here at home. The government has framed out a support package for South Korea's auto industry as it seeks to ease the impact of U.S. tariffs on car imports that kicked in on April 3rd and on car parts to go into effect by May 3rd. Shin Se-byuck has details. South Korea will funnel an additional 2 trillion won, or 1-point-3 billion U.S. dollars, into the auto and parts industry amid pressure from the 25 percent tariff imposed by the Trump administration. "We'll provide 2 trillion won in special policy financing for affected firms and offer low-interest loans and supporting corporate bond issuance worth around 1 trillion won in cooperation with major companies and financial institutions." The announcement was made during an economy-related ministers' meeting on Wednesday, which addressed responses to shifting trade conditions, including U.S. tariffs and global supply chain changes. As a result, policy financing for the auto sector will increase from 13 trillion won to 15 trillion won,.. worth around 10-point-1 billion dollars this year. This came as the U.S. is a key market for Korea's auto industry, accounting for 34-point-7 billion dollars, or nearly half of the country's total auto exports which was worth 70-point-8 billion dollars last year. With Washington's 25 percent tariffs in place, Korea's auto exports to the U.S. are projected to drop by nearly 19 percent this year. One expert says the financial package may serve as a short-term buffer, but a different approach is needed for a long-term solution. "To fundamentally address the issue, the government needs to focus on boosting productivity, developing new technologies, and easing labor-management tensions." Aside from the aid package, the government will also extend its EV subsidy program, tied to manufacturer discounts to boost domestic sales,.. from the first half of the year through to the end of 2025. It will also support efforts to tap into new markets, particularly in the Global South, as part of its push to diversify auto exports. Plans include the early implementation of free trade agreements with countries including the UAE and Ecuador, and the resumption of FTA talks with Mexico to help open up new export destinations. The government is also accelerating efforts to diversify export markets, focusing on key industries most vulnerable to trade disruptions. It plans to inject over 40 million U.S. dollars worth of support for overseas operations of small and mid-sized firms, while expanding R&D funding to boost technological competitiveness. Meanwhile, Finance Minister Choi Sang-mok said the government will soon unveil 6-point-7 billion dollars worth of supplementary budget to boost industrial competitiveness and tackle global trade shifts, calling for swift parliamentary support. Shin Se-byuck, Arirang News.

Korean government bonds' inclusion in the 'WGBI advanced group' delayed

2025/04/09 10:00

South Korea's inclusion in the World Government Bond Index, which was originally scheduled for November, has been delayed to April next year. That means the benefits of being included in the WGBI, including reduction in government bond procurement costs, will also be delayed. While some pundits say the delay reflects investors' concerns about the political instability in the country, the government said it's due to Japan's request for an improvement in the investment environment, and nothing to do with the political situation. The South Korean government projects at least 56 billion dollars would flow into the country's national bond market once it's included in the WGBI.

S. Korea sees three consecutive months of job growth; decline in construction and manufacturing

2025/04/09 10:00

South Korea added nearly 200,000 jobs in March compared to the previous year, marking the third consecutive month of job growth. According to Statistics Korea on Wednesday the health and social welfare sector gains, followed by the public administration, defense, and social security sector, as well as the finance sector. However, construction jobs fell by 185,000 year on year, while manufacturing jobs declined by 112,000. By age group, individuals aged 60 and older experienced a year-on-year surge in employment, whereas those aged 15 to 29 saw a decline.

S. Korea announces US$ 1.3 bil. support package for auto industry amid U.S. tariff pressures

2025/04/09 10:00

South Korea will funnel an additional 2 trillion won, or 1-point-3 billion U.S. dollars, into the auto and parts industry amid pressure from the 25% tariff imposed by the Trump administration. The announcement came during an economy-related ministers' meeting on Wednesday, which addressed responses to shifting trade conditions, including U.S. tariffs and global supply chain changes. Last year, U.S.-bound vehicle exports totaled 34-point-7 billion dollars, accounting for nearly half of Korea's total auto exports. The government is also speeding up efforts to diversify export markets. It plans to inject over 40 million U.S. dollars worth of support for overseas operations of small and mid-sized firms, while expanding R&D funding to boost technological competitiveness.