News

On-point: S. Korea eyeing removal of U.S. reciprocal tariffs ahead of consultations. How likely is that?

2025/04/24 10:00

As mentioned earlier, South Korea's negotiation team of Finance Minister Choi Sang-mok and Industry Minister Ahn Duk-geun arrived in the U.S. ahead of the "two-plus-two" consultations set to take place tonight Korea time. Eyes are on whether what the team aims for can be smoothly reached. For more on this, we are connected live with Professor Song Soo-young this morning. Good morning Professor, welcome to the show. Just a few hours ago, the industry minister said he aims to have the imposition of reciprocal tariffs removed. Could you elaborate on the key agenda items expected to be discussed? And how do you forecast this to go? U.S. President Donald Trump personally attended high-level tariff negotiations with Japan, and some speculate that a similar surprise appearance could happen with the Korean delegation. What should Seoul's strategy be to avoid a one-sided outcome in the event of such an intervention? A little earlier, U.S. media reported that Trump is planning to spare carmakers from some of his tariffs. How does this retreat lift concerns from automakers a bit? It seems Trump is slowly making some concessions, raising our hope for smooth negotiations tonight. However, even if trade negotiations between South Korea and the U.S. are concluded smoothly, many experts predict that the Korean economy will still be impacted if the U.S.-China tariff war drags on. What is your view on this? The IMF revised down its global forecast, saying the world economy will grow by 2-point-8 percent this year. In terms of the South Korean economy, it said it will see just 1-percent growth this year. How did you see the IMF's latest projections, and if Trump retreats further, what positive effect might there be for the economic outlook? That is all for now, Professor Song. Thanks so much for sharing your insight with us. We appreciate it.

S. Korea's Q1 GDP Shrinks 0.2% amid political risk, U.S. trade tensions

2025/04/24 10:00

Shifting gears, South Korea's economy contracted in the first quarter of this year for the first time in three quarters. For more, our economy correspondent Shin Se-byuck is on the line. Sebyuck, let's begin with the key figures. According to the Bank of Korea on Thursday, South Korea's real gross domestic product, a key indicator of the economy, shrank by 0-point-2 percent on-quarter in Q1. This marks the steepest contraction since the fourth quarter of 2022, when the economy,.. hit by the COVID-19 pandemic, contracted by 0.5 percent. It's also the first negative growth in three quarters. What's more concerning is that quarterly growth has remained below point-1 percent for four consecutive quarters, something that hasn't happened since related statistics were first compiled in 1960. Breaking it down, private consumption and government spending fell by 0-point-1 percent, while construction investment plunged 3-point-2 and facility investment dropped 2-point-1 percent, dragging down the overall growth. Exports declined by 1-point-1 percent, while imports dropped 2 percent, mostly due to falling energy imports. What are some of the key factors behind this downturn? In fact, the Bank of Korea had already hinted at a possible contraction last week. It cited several factors, including prolonged political uncertainty at home and dampened economic sentiment triggered by U.S. tariff policies. There's also the temporary halt to construction activity and a delay in demand for high-performance semiconductors like HBM chips. Given these setbacks, South Korea's full-year growth is now expected to fall short of the Bank of Korea's February forecast of 1-point-5 percent. An updated projection is expected next month, after factoring in the supplementary budget currently under review by the National Assembly and developments in global trade talks. Thank you for the detailed updates. That was our correspondent Shin Sebyuck reporting on Korea's first-quarter GDP figures.

S. Korea to begin high-level trade talks with U.S. in Washington

2025/04/23 20:00

Thank you for joining us. I'm Yoon Jung-min. Finance Minister Choi Sang-mok is in Washington and upon arrival, he pledged to promote dialogue that will advance the bilateral alliance while the Trump administration is in an apparent rush for some outcome. Kim Jung-sil has our top story. South Korea's Deputy Prime Minister and Finance Minister, Choi Sang-mok, has arrived in Washington, D.C. for trade talks with the U.S. The discussions are set to begin at 8 a.m. local time on Thursday. This marks the highest-level visit by a South Korean official since the start of the Trump administration's second term. "We are here to initiate discussions that will further strengthen the ROK-U.S. alliance. I will share the results of our talks on Thursday." Choi's visit comes amid rising trade tensions, with the U.S. imposing reciprocal tariffs which will be imposed after a 90-day grace period as well as 25% tariffs on steel, aluminum, and automobiles. Trade Minister Ahn Duk-geun, on his way to Washington, expressed his commitment to addressing these issues. "In sectors like automobiles, where the 25% tariff has caused significant damage, we will work to find a solution as quickly as possible." Minister Ahn also mentioned that they are prepared for the possibility of a surprise appearance by President Trump, as seen in recent U.S.-Japan negotiations. The ministers will join discussions with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer. The talks are expected to cover a broad range of issues, including the trade imbalance, non-tariff barriers like U.S. beef import restrictions, and even defense cost-sharing. "We are moving at Trump speed to ensure these deals are made on behalf of the American worker and the American people." Experts in Seoul advise South Korea to take a measured approach for a better long-term deal. "We don't know if what Trump wants today it will be the same tomorrow—he may ask additional things in the near future. We want to make sure that if there is a deal, then it's a complete deal." The expert also cautioned that the U.S. may be seeking a quick win for President Trump, which could lead to rushed decisions. With so much at stake, the outcome of Thursday's talks is being closely watched. Kim Jung-sil, Arirang News.

Trump eases investor fears with China trade optimism, denies plan to fire Fed chief

2025/04/23 20:00

Meanwhile, in what appears to be an attempt aimed at appeasing market anxiety, U.S. President Donald Trump has reaffirmed prospects of a trade deal with China and rejected prospects of replacing the head of the Federal Reserve. Lee Soo-jin has more. U.S. President Donald Trump is moving to ease investor concerns, highlighting optimism over trade talks with China while dismissing reports that he plans to fire Federal Reserve Chair Jerome Powell. Speaking to reporters in the Oval Office on Tuesday, local time, Trump emphasized that trade talks with Beijing were "going well," and added, once again, that he maintains a good relationship with Chinese President Xi Jinping. "My relationship with President Xi is great. It was — it's been great for a long time. We've had a very good relationship, and I think we'll make a deal with China. If we don't make a deal, we'll set it. We'll just set the number." He also acknowledged that the current 145 percent tariff on Chinese goods was high, but said that while this will be reduced "substantially," it will not be eliminated entirely. The Trump administration is actively ramping up trade talks, with the White House press secretary saying his trade team would meet with 34 countries, just this week, and that 18 trade proposals were currently undergoing reviews. "As I mentioned, there have now been 18 proposals and more than 100 countries around the world who are wanting to make a deal with the United States of America, So we feel everyone involved wants to see a trade deal happen, " When Trump was asked whether he had plans to fire Powell, he said he "never did." "The press runs away with things. No, I have no intention of firing him. I would like to see him be a little more active in terms of his idea to lower interest rates." This marks a sharp departure from Trump's recent pressure on the Fed chair to cut interest rates, last lowered in December. Just a day earlier, he escalated his criticism on Truth Social, calling Powell "a major loser" and suggesting he might remove him before his term ends in May 2026. Markets responded positively to his most recent remarks, with major U.S. stock indexes closing significantly higher on Tuesday, rebounding from Monday's steep sell-off triggered by Trump's criticism of Powell. Lee Soo-jin, Arirang News.

S. Korea to begin high-level trade talks with U.S. in Washington

2025/04/23 17:00

Finance Minister Choi Sang-mok is in Washington D.C. and upon arrival there he pledged to promote dialogue that will advance the bilateral alliance. Kim Jung-sil has our top story. South Korea's Deputy Prime Minister and Finance Minister, Choi Sang-mok, has arrived in Washington, D.C. for trade talks with the U.S. The discussions are set to begin at 8 a.m. local time on Thursday. This marks the highest-level visit by a South Korean official since the start of the Trump administration's second term. "We are here to initiate discussions that will further strengthen the ROK-U.S. alliance. I will share the results of our talks on Thursday." Choi's visit comes amid rising trade tensions, with the U.S. imposing reciprocal tariffs which will be imposed after a 90-day grace period as well as 25% tariffs on steel, aluminum, and automobiles. Trade Minister Ahn Duk-geun, on his way to Washington, expressed his commitment to addressing these issues. "In sectors like automobiles, where the 25% tariff has caused significant damage, we will work to find a solution as quickly as possible." Minister Ahn also mentioned that they are prepared for the possibility of a surprise appearance by President Trump, as seen in recent U.S.-Japan negotiations. The ministers will join discussions with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer. The talks are expected to cover a broad range of issues, including the trade imbalance, non-tariff barriers like U.S. beef import restrictions, and even defense cost-sharing. "We are moving at Trump speed to ensure these deals are made on behalf of the American worker and the American people." Experts in Seoul advise South Korea to take a measured approach for a better long-term deal. "We don't know if what Trump wants today it will be the same tomorrow—he may ask additional things in the near future. We want to make sure that if there is a deal, then it's a complete deal " The expert also cautioned that the U.S. may be seeking a quick win for President Trump, which could lead to rushed decisions. With so much at stake, the outcome of Thursday's talks is being closely watched. Kim Jung-sil, Arirang News.

IMF slashes S. Korea's growth projection by half for 2025 amid a "new high" in uncertainties

2025/04/23 17:00

Well regardless of that rebound on Wall Street. The International Monetary Fund says economic expansion this year will slow sharply for most countries including South Korea as U.S. tariffs take their toll. Our Moon Hye-ryeon has details. The International Monetary Fund has sharply lowered its forecast for South Korea's economic growth amid rising trade tensions and heightened policy uncertainty. In its latest economic outlook, the IMF now expects the economy to grow by just one percent in 2025 a full percentage point lower than its January projection. The estimate was presented in the report's appendix without further commentary, with the IMF's forecast the lowest among projections for South Korea from major institutions. The Korea Development Institute forecast a growth of 1-point-6 percent for the year, while the OECD and the Bank of Korea's projections came in at 1-point-5 percent. However, the BOK said last week, following its Monetary Policy Committee meeting, that it was likely to cut its economic growth projection as it expects growth in the first quarter of the year to be lower than previously estimated. The IMF also revised down its global forecast by point-five percentage points. The revised outlook with the expectation that the world economy will grow by 2-point-8 percent reflects what the agency described as a "new high" in uncertainties spurred by escalating trade tensions. In response to these volatile conditions, the IMF introduced a new forecasting method. Alongside baseline projection based on data available as of early April, the outlook includes two alternative scenarios that account for key tariff-related developments. Prior to the new tariff announcement by the United States on April 2nd, global growth was projected at 3-point-2 percent, factoring in high oil prices and U.S. trade policy. After tariff suspensions and retaliatory measures on April 9th, the forecast dropped to 2-point-8 percent, suggesting that gains from delayed tariffs are outweighed by slower growth in the U.S. and China. The U.S. saw one of the biggest downward revisions, with 2025 growth now forecast at 1-point-8 percent, down point-nine percentage points — while China's growth forecast was also lowered to 4 percent. To mitigate the growing risks, the IMF recommended working toward a more predictable trade environment through regional and multilateral agreements and stressed the importance of balanced monetary policy to maintain financial stability and anchor inflation expectations. Moon Hye-ryeon, Arirang News.

Trump eases investor fears with China trade optimism, denies plan to fire Fed chief

2025/04/23 17:00

Meanwhile in what appears to be an attempt aimed at appeasing market anxiety U.S. President Donald Trump has reaffirmed prospects of a trade deal with China and rejected prospects of replacing the head of the Federal Reserve. Lee Soo-jin covers his latest remarks. U.S. President Donald Trump is moving to ease investor concerns, highlighting optimism over trade talks with China while dismissing reports that he plans to fire Federal Reserve Chair Jerome Powell. Speaking to reporters in the Oval Office on Tuesday, local time, Trump emphasized that trade talks with Beijing were "going well," and added, once again, that he maintains a good relationship with Chinese President Xi Jinping. "My relationship with President Xi is great. It was — it's been great for a long time. We've had a very good relationship, and I think we'll make a deal with China. If we don't make a deal, we'll set it. We'll just set the number " He also acknowledged that the current 145 percent tariff on Chinese goods was high, but said that while this will be reduced "substantially," it will not be eliminated entirely. The Trump administration is actively ramping up trade talks, with the White House press secretary saying his trade team would meet with 34 countries, just this week, and that 18 trade proposals were currently undergoing reviews. "As I mentioned, there have now been 18 proposals and more than 100 countries around the world who are wanting to make a deal with the United States of America, So we feel everyone involved wants to see a trade deal happen, " When Trump was asked whether he had plans to fire Powell, he said he "never did." "The press runs away with things. No, I have no intention of firing him. I would like to see him be a little more active in terms of his idea to lower interest rates." This marks a sharp departure from Trump's recent pressure on the Fed chair to cut interest rates, last lowered in December. Just a day earlier, he escalated his criticism on Truth Social, calling Powell "a major loser" and suggesting he might remove him before his term ends in May 2026. Markets responded positively to his most recent remarks, with major U.S. stock indexes closing significantly higher on Tuesday, rebounding from Monday's steep sell-off triggered by Trump's criticism of Powell. Lee Soo-jin, Arirang News.

IMF slashes S. Korea's growth projection by half for 2025 amid a "new high" in uncertainties

2025/04/23 10:00

And the world economy is already being swayed by Trump's tariff policies. According to the IMF, the South Korean economy will see just 1% growth this year due to trade uncertainties sparked by the tariff push. Our Moon Hye-ryeon has more. The International Monetary Fund has sharply lowered its forecast for South Korea’s economic growth amid rising trade tensions and heightened policy uncertainty. In its latest economic outlook, the IMF now expects the economy to grow by just one percent in 2025 a full percentage point lower than its January projection. The estimate was presented in the report's appendix without further commentary, with the IMF’s forecast the lowest among projections for South Korea from major institutions. The Korea Development Institute forecast a growth of 1-point-6 percent for the year, while the OECD and the Bank of Korea’s projections came in at 1-point-5 percent. However, the BOK said last week, following its Monetary Policy Committee meeting, that it was likely to cut its economic growth projection as it expects growth in the first quarter of the year to be lower than previously estimated. The IMF also revised down its global forecast by point-five percentage points. The revised outlook with the expectation that the world economy will grow by 2-point-8 percent reflects what the agency described as a “new high” in uncertainties spurred by escalating trade tensions. In response to these volatile conditions, the IMF introduced a new forecasting method. Alongside baseline projection based on data available as of early April, the outlook includes two alternative scenarios that account for key tariff-related developments. Prior to the new tariff announcement by the United States on April 2nd, global growth was projected at 3-point-2 percent, factoring in high oil prices and U.S. trade policy. After tariff suspensions and retaliatory measures on April 9th, the forecast dropped to 2-point-8 percent, suggesting that gains from delayed tariffs are outweighed by slower growth in the U.S. and China. The U.S. saw one of the biggest downward revisions, with 2025 growth now forecast at 1-point-8 percent, down point-nine percentage points — while China’s growth forecast was also lowered to 4 percent. To mitigate the growing risks, the IMF recommended working toward a more predictable trade environment through regional and multilateral agreements and stressed the importance of balanced monetary policy to maintain financial stability and anchor inflation expectations. Moon Hye-ryeon, Arirang News.

Wall Street stumbles as Trump bashes Fed chair Powell again

2025/04/22 20:00

Wall Street ended sharply lower on Monday in response to crude comments by President Donald Trump directed at the head of the U.S. Federal Reserve Jerome Powell, pressuring him to lower interest rates. Lee Seung-jae reports. Wall Street stumbled to a close on the week's first trading session on Monday. The Dow Jones Industrial Average fell 971-point-8-2 points, or 2-point-4-8 percent, to close at 38-thousand-170-point-4-1. The S&P 500 shed 2-point-3-6 percent, while the tech-heavy Nasdaq fell 2-point-5-5 percent to settle at 15-thousand-870-point-9-0. The so-called 'Magnificent Seven' tech giants all dragged the major indexes lower, with Tesla losing 5-point-8 percent, while Nvidia shed more than 4 percent. Wall Street saw U.S. stocks tumble and bonds sold off as U.S. President Donald Trump threw fresh criticism towards U.S. Fed Chair Jerome Powell on Monday,.. pressuring him to cut interest rates. Taking to social media, Trump said the economy would slow unless Powell, who he called "Mr. Too Late, a major loser," lowers interest rates immediately. Trump had previously called for the U.S. Fed to lower rates, even hinting at Powell's possible "termination." The lack of progress on global trade after Trump announced his reciprocal tariffs earlier this month has also dented investor confidence. Since Trump's announcement on April 2nd, the S&P 500 is down 9 percent, and both the Nasdaq and Dow Jones fell nearly 10 percent. Lee Seung-jae, Arirang News.

Finance Minister Choi Sang-mok flies to U.S. for 2+2 trade talks with Washington

2025/04/22 20:00

Finance Minister Choi Sang-mok departed for the U.S. today to attend "two-plus-two" trade consultations set to take place later this week. Other than expected topics, the Korean team is also preparing for unexpected ones, too. Our Park Kun-woo reports. South Korea's Finance Minister Choi Sang-mok departed for the U.S. on Tuesday to attend the upcoming "2+2 trade talks" with Washington to address trade and tariff issues. "I will return after paving the way for renewed discussions on strengthening the alliance with the U.S." The talks, reportedly proposed by the U.S., will be the first high-level trade consultations since the start of Trump's second term, and will be held on Thursday local time. Joining Choi are Trade Minister Ahn Duk-geun, U.S. Treasury Secretary Scott Bessent, and U.S. Trade Representative Jamieson Greer. Ahn is set to depart on Wednesday. Key agenda items are expected to be trade issues following Trump's reciprocal tariffs and bilateral cooperation in energy and shipbuilding. Seoul is also preparing for unexpected topics from the U.S. and accordingly plans to send officials from other ministries, including foreign affairs and agriculture. The government is reportedly preparing for the possibility of Trump joining the talks, as seen in recent negotiations with Japan. Trade Minister Ahn said the agenda items will not cover the FTA or the stationing of U.S. forces in Korea. Acting President Han Duk-soo also on Tuesday expressed hope that the meeting will lead to a "win-win" solution and mark a meaningful starting point for deeper cooperation between the two countries. Park Kun-woo, Arirang News.

Wall Street stumbles as Trump bashes Fed chair Powell again

2025/04/22 17:00

Wall Street plunged during its session on Monday in response to crude comments by President Donald Trump directed at the head of the U.S. Federal Reserve Jerome Powell. Lee Seung-jae reports. Wall Street stumbled to a close on the week's first trading session on Monday. The Dow Jones Industrial Average fell 971-point-8-2 points, or 2-point-4-8 percent, to close at 38-thousand-170-point-4-1. The S&P 500 shed 2-point-3-6 percent, while the tech-heavy Nasdaq fell 2-point-5-5 percent to settle at 15-thousand-870-point-9-0. The so-called 'Magnificent Seven' tech giants all dragged the major indexes lower, with Tesla losing 5-point-8 percent, while Nvidia shed more than 4 percent. Wall Street saw U.S. stocks tumble and bonds sold off as U.S. President Donald Trump threw fresh criticism towards U.S. Fed Chair Jerome Powell on Monday,.. pressuring him to cut interest rates. Taking to social media, Trump said the economy would slow unless Powell, who he called "Mr. Too Late, a major loser," lowers interest rates immediately. Trump had previously called for the U.S. Fed to lower rates, even hinting at Powell's possible "termination." The lack of progress on global trade after Trump announced his reciprocal tariffs earlier this month has also dented investor confidence. Since Trump's announcement on April 2nd, the S&P 500 is down 9 percent, and both the Nasdaq and Dow Jones fell nearly 10 percent. Lee Seung-jae, Arirang News.

Wall Street stumbles as Trump bashes Fed chair Powell again

2025/04/22 10:00

Wall Street saw a rough start to the week, with U.S. stocks sliding for a fourth consecutive session on Monday. The major losses come as U.S. President Donald Trump picked on Fed Chair Jerome Powell yet again for not lowering interest rates. Lee Seung-jae reports. Wall Street stumbled to a close on the week's first trading session on Monday. The Dow Jones Industrial Average fell 971-point-8-2 points, or 2-point-4-8 percent, to close at 38-thousand-170-point-4-1. The S&P 500 shed 2-point-3-6 percent, while the tech-heavy Nasdaq fell 2-point-5-5 percent to settle at 15-thousand-870-point-9-0. The so-called 'Magnificent Seven' tech giants all dragged the major indexes lower, with Tesla losing 5-point-8 percent, while Nvidia shed more than 4 percent. Wall Street saw U.S. stocks tumble and bonds sold off as U.S. President Donald Trump threw fresh criticism towards U.S. Fed Chair Jerome Powell on Monday,.. pressuring him to cut interest rates. Taking to social media, Trump said the economy would slow unless Powell, who he called "Mr. Too Late, a major loser," lowers interest rates immediately. Trump had previously called for the U.S. Fed to lower rates, even hinting at Powell's possible "termination." The lack of progress on global trade after Trump announced his reciprocal tariffs earlier this month has also dented investor confidence. Since Trump's announcement on April 2nd, the S&P 500 is down 9 percent, and both the Nasdaq and Dow Jones fell nearly 10 percent. Lee Seung-jae, Arirang News.

Stock

2025/04/21 20:00

2025. 4. 21. KOREAN STOCK MARKET KOSPI : 2,488.42 ▲5.00 +0.20% KOSDAQ : 715.45 ▼2.32 -0.32% KOSPI200 : 329.31 ▲0.96 +0.29% ASIAN STOCK MARKET NIKKEI225 : 34,279.92 ▼450.36 -1.30% HANG SENG : closed SHANGHAI : 3,291.43 ▲14.70 +0.45% WALL STREET (April 18) DOW JONES : CLOSED NASDAQ : CLOSED S&P500 : CLOSED EXCHANGE RATE USD : 1,419.10 (-4.20) JPY : 1,007.70 (+7.66) CNY : 194.66 (-0.28) EUR : 1,633.03 (+14.31)

How Trump's tariffs will impact S. Korea's exports after 90-day pause ends

2025/04/21 20:00

Against this backdrop, exports to the U.S. showed a notable drop of over 14-percent from a year ago during the first 20 days of April. Our Lee Soo-jin explains what the trade war means for Korea's outbound shipments. South Korea's exports declined during the first 20 days of April, reflecting an early impact of the U.S. administration's tariffs on global trade. According to the Korea Customs Service on Monday, outbound shipments stood at 33-point-9 billion U.S. dollars during this period, down 5-point-2 percent from the previous year. This, despite the number of working days during the period being the same as last year. The drop in exports comes as shipments to the U.S. showed a notable drop of 14-point-3 percent year-on-year, which the agency attributed to the tariffs. The U.S. set a 25 percent "reciprocal tariff" rate on South Korea, but President Donald Trump announced a 90-day pause on its implementation earlier this month for most nations. This means that as of now for Korea, a base tariff rate of 10 percent is in place, along with 25 percent tariffs on specific items, namely automobiles, steel and aluminum. But with these tariffs already contributing to a more than 5 percent year-on-year decline in exports during the first 20 days of April, concern is growing over a sharper downturn once the 90-day pause expires. "During the 90-day pause, there's uncertainty on two fronts, how the U.S. will proceed, and what kind of negotiations with South Korea will take place. But with base tariffs of 10 percent already in effect since April 6th, export figures aren't expected to improve anytime soon." Shipments of nine of the country's top ten export items, including automobiles and oil products, all saw declines, while only chip exports rose. But it's unclear whether shipments of semiconductors will remain strong with Trump expected to announce chip tariffs sometime this week. "But the tariffs will be in place in the not distant future because, as you know, like we did with steel, like we did with the automobiles, like we did with aluminum, we'll be doing that with semiconductors, with chips, " The same expert said that because uncertainty is a key factor, in the upcoming trade talks with the U.S., South Korea should not rush to conclude negotiations, but instead focus on understanding Washington's intentions and demands. Lee Soo-jin, Arirang News.

S. Korea "will not fight" U.S. over tariffs but will put nat'l interests first as top officials meet in D.C. on Thursday

2025/04/21 17:00

Top finance and trade officials are sitting down with their U.S. counterparts in Washington D.C. later this week for tariff talks and acting President Han Duck-soo says the strategy is dialogue not dispute. Our correspondent Oh Soo-young explains. South Korea will not fight the United States over Donald Trump's tariffs But it will also seek national interest first, as top trade officials meet in Washington this Thursday. That's according to Acting President Han Duck-soo, who on Monday confirmed South Korea's finance and trade ministers will meet their U.S. counterparts for a "2+2" consultation. On Thursday, 8 AM local time or 9 PM in South Korea Choi Sang-mok and Ahn Duk-geun will sit down with Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer on the sidelines of the IMF–World Bank Spring Meetings. This will be followed by separate one-on-one meetings between the ministers. The bilateral was first proposed by the U.S., after the Trump Administration decided to delay its reciprocal tariffs, including a 25-percent duty on South Korean goods. The wide-ranging tariffs were paused for 90 days, after panic in U.S markets, wiped out five-point-four trillion dollars in just 48 hours. Shortly before implementing the pause on April 9th, the U.S. President held a half-hour phone call with Acting President Han Duck-soo, and ordered officials to prioritize deals with allied countries like South Korea and Japan, projecting optimism that a "great deal" could be made. Han told government officials Monday that the talks "won't be easy," but he expects it will mark the beginning of cooperation. "With the principle of putting our national interests first, the government will approach the consultations with the U.S. calmly and earnestly, doing our utmost to find a mutually beneficial win-win solution. We will specifically confirm each side's interests regarding the three key areas mentioned during my phone call with President Trump: trade balance, 무역 균형, shipbuilding, 조선, and LNG, 그리고 LNG, and seek mutually reciprocal points of agreement. In interviews with foreign media, Han has said Seoul would not fight the U.S., but hinted there could be concessions, for a win-win deal between the long-term allies. He suggested South Korea could increase purchases of U.S. liquefied natural gas and commercial aircraft. Korean shipyards could also help America maintain its naval shipbuilding capacity. Seoul could further discuss non-tariff barriers, addressing existing U.S. concerns about auto emissions regulations, pharmaceutical pricing, beef imports, and network fees imposed on platforms like Netflix. It's unclear whether the cost of keeping U.S. soldiers in South Korea will be raised during the session. While Trump has indicated he'd like a "one-stop shopping" deal combining trade and defense issues into a single package, Seoul officials are prioritizing trade talks to tackle tariffs, keeping security matters separate. The government has described the meeting as a "consultation," not a "negotiation," signaling a measured approach. On whether the U.S. leader might appear at the meeting in person, as he did unexpectedly during talks with Japan last week, South Korea's trade minister said Sunday that Seoul is preparing for such a scenario. Oh Soo-young, Arirang News.

S. Korea's exports of dried seaweed, or gim, hit record high in 2025 Q1

2025/04/21 17:00

Exports of gim, Korea's dried seaweed rose remarkably during the first quarter of this year with shipments to the U.S. soaring. Lee Eun-hee has details. The exports of Korean staple gim, or dried seaweed, hit a record high in the first quarter of this year, driven by strong demand from U.S. and China. According to the Korea Agro-Fisheries & Food Trade Corporation on Monday, Korea's seaweed export value in the first quarter of this year reached 281-million U.S. dollars, or around 402-billion Korean won. That is more than 20-percent increase from the same period last year. Export volume for the first quarter also rose to 10-thousand-161 tons, up more than 7-percent from last year. Compared to the same period in 2015, this marks a massive 844-percent increase over the past decade. Monthly export growth rates compared to the same period last year stood at more than 7-percent for January, over 52-percent for February, and over ten-percent in March according to the Korea Maritime Institute's Fisheries Outlook Center. With the demand from major overseas markets remaining high, the center is expecting to see the exports for this month to also exceed those of both last year and historical average for the same month. By country, the United States was the largest importer of Korean seaweed in the first quarter, followed by China, Japan, and Thailand. The type of seaweed each country prefers is a bit different though. Most of Korea's seaweed exports to China were in the form of dried seaweed, with 2-thousand-258 tons shipped, a whopping 97-percent increase from the previous year. Meanwhile, the U.S. remains the top destination for seasoned seaweed, with exports reaching 1-thousand-367 tons in the first quarter, accounting for more than 30-percent of total seasoned seaweed exports. The Oceans and Fisheries Ministry attributed such growing demand in China, to the popularity of Korean dramas and films, which have sparked a gimbap trend and a surge in dried seaweed consumption. In the U.S., the popularity of seaweed snacks has pushed up demand. With both export volume and value on the rise, the government is expecting gim exports to hit its annual goal of one-billion U.S. dollars this year, two years before the original target date of 2027. Kim Bo-kyoung, Arirang News.

Exports for first 20 days of April drop as shipments to U.S. fall

2025/04/21 17:00

And while we await that upcoming bilateral consultation the TOLL of U.S. tariffs on Korea's trade numbers has become clear. Exports lost ground during the first 20 days of this month. According to the Korea Customs Service outbound shipments stood at 33-point-9 billion U.S. dollars during this period down 5-point-2 percent on year. In fact findings show Korea's exports to the U.S. market tumbled over 14 percent in the face of the Trump administration's tariffs. Among Korea's top ten export items nine including cars noted declines while chips climbed.

S. Korea's exports of dried seaweed, or gim, hit record high in 2025 Q1

2025/04/21 10:00

South Korean dried seaweed, also known as 'gim' in Korean, has proven its global popularity, with its outbound shipments seeing a record high in the first quarter of the year. It was especially popular in the U.S. and China. Our Moon Hye-ryeon has more. The exports of Korean staple gim, or dried seaweed, hit a record high in the first quarter of this year, driven by strong demand from U.S. and China. According to the Korea Agro-Fisheries & Food Trade Corporation on Monday, Korea's seaweed export value in the first quarter of this year reached 281-million U.S. dollars, or around 402-billion Korean won. That is more than 20-percent increase from the same period last year. Export volume for the first quarter also rose to 10-thousand-161 tons, up more than 7-percent from last year. Compared to the same period in 2015, this marks a massive 844-percent increase over the past decade. Monthly export growth rates compared to the same period last year stood at more than 7-percent for January, over 52-percent for February, and over ten-percent in March according to the Korea Maritime Institute's Fisheries Outlook Center. With the demand from major overseas markets remaining high, the center is expecting to see the exports for this month to also exceed those of both last year and historical average for the same month. By country, the United States was the largest importer of Korean seaweed in the first quarter, followed by China, Japan, and Thailand. The type of seaweed each country prefers is a bit different though. Most of Korea's seaweed exports to China were in the form of dried seaweed, with 2-thousand-258 tons shipped, a whopping 97-percent increase from the previous year. Meanwhile, the U.S. remains the top destination for seasoned seaweed, with exports reaching 1-thousand-367 tons in the first quarter, accounting for more than 30-percent of total seasoned seaweed exports. The Oceans and Fisheries Ministry attributed such growing demand in China, to the popularity of Korean dramas and films, which have sparked a gimbap trend and a surge in dried seaweed consumption. In the U.S., the popularity of seaweed snacks has pushed up demand. With both export volume and value on the rise, the government is expecting gim exports to hit its annual goal of one-billion U.S. dollars this year, two years before the original target date of 2027. Kim Bo-kyoung, Arirang News.

S. Korea "will not fight" but aim for deal with Washington, as top trade officials meet in D.C. this week

2025/04/21 10:00

South Korea's finance and trade officials are sitting down with their U.S. counterparts this week to hold the country's first tariff talks since Washington put its wide range of levies against its trading partners on hold. Acting President Han Duck-soo has made it clear South Korea will not be fighting but aiming for a 'win-win' arrangement. Oh Soo-young reports. South Korea will not fight but try to make a deal with the United States over Donald Trump's tariffs, as top trade officials meet in Washington this week. Seoul officials confirmed on Sunday that high-level consultations will take place., with Finance Minister Choi Sang-mok and Trade Minister Ahn Duk-geun flying out to D.C. for a so-called "2+2" consultation. They will meet with their U.S. counterparts Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer on the sidelines of the IMF–World Bank Spring Meetings. The bilateral was first proposed by the U.S., after the Trump Administration decided to delay its reciprocal tariffs, including a 25 percent duty on South Korean goods. The wide-ranging tariffs were paused for 90 days, after panic in U.S markets, wiped out five-point-four trillion dollars in just 48 hours. Shortly before implementing the pause, the U.S. President held a half-hour phone call with Acting President Han Duck-soo, and ordered officials to prioritize deals with allied countries like South Korea and Japan, projecting optimism that a "great deal" could be made. In an interview with the Financial Times published Sunday, Han said Seoul would not fight the U.S. over its tariffs, but hinted there could be concessions, for a win-win deal between the long-term allies. He suggested South Korea could increase purchases of U.S. liquefied natural gas and commercial aircraft, and that cooperation in naval shipbuilding could help America in strengthening alliances. Han further said Seoul could discuss non-tariff barriers, pointing to existing U.S. concerns about auto emissions regulations, pharma pricing, beef imports, and network fees imposed on platforms like Netflix. It's unclear whether the cost of keeping U.S. soldiers in South Korea will be raised during the session. While Trump has indicated he'd like a "one-stop shopping" deal combining trade and defense issues into a single package, Seoul officials are prioritizing trade talks to tackle tariffs,.. keeping security matters separate. The government has described the meeting as a "consultation," not a "negotiation," signaling a measured approach. The agenda and the schedule of this week's meeting are still being finalized. On whether the U.S. leader might appear at the meeting in person, as he did unexpectedly during talks with Japan last week, South Korea's trade minister said Sunday that Seoul is preparing for such a scenario. Oh Soo-young, Arirang News.

[WEEKLY FOCUS] BOK holds interest rate steady at 2.75% despite U.S. tariff shock amid "high uncertainty"

2025/04/19 12:00

South Korea's central bank on Thursday decided to leave its benchmark interest rate as it is at 2.75% — a decision that comes amid growing economic headwinds both at home and abroad, including volatile exchange rates for the Korean won against the greenback due to trade uncertainties. For more, we're joined in the studio by our economic correspondent, Moon Hye-ryeon. Welcome, Hye-ryeon. Thank you for having me. Hye-ryeon, let's begin with the decision itself. Yes, the Bank of Korea held its base rate steady at 2-point-7-5 percent during its third Monetary Policy Committee meeting of the year. This follows a quarter-point cut in February, and while the BOK has signaled a general easing stance, it opted to take a wait-and-see approach this time. "Considering the overall uncertain conditions, we decided to maintain our policy stance toward rate cuts, but judged that it would be appropriate to keep the base rate at its current level this time and observe further how domestic and external policy conditions evolve." So rather than moving forward with another rate cut right away, the bank is choosing to pause and reassess, especially in light of volatility in the global economy and capital markets. Why has the BOK decided to hold off on another rate cut, despite its earlier signals? There are several reasons, and a key one is the Korean won. The exchange rate against the U.S. dollar has been on a rollercoaster — surging to a 16-year high earlier this month, then plummeting to its lowest for the year. Right now, the interest rate gap between the U.S. and South Korea is 1-point-7-5 percentage points. A further widening could spark more capital outflows, putting even more pressure on the won. At the same time, global factors are weighing heavily. Trade conflicts, especially involving the U.S., have increased market volatility. The BOK is watching how U.S. tariff policy unfolds, since changes there could ripple across financial markets, impacting Korea's exports and investor sentiment. Domestically, household loans are ticking up again due to a rebound in housing transactions. That also gives the BOK a reason to hold, at least for now, to avoid overheating financial risk. Let's turn to the economy. What's the BOK's assessment of South Korea's current economic conditions? Frankly, the outlook is cloudy. The BOK acknowledged that economic growth was slower than expected in the first quarter. Both domestic demand and exports have taken a hit due to ongoing political uncertainty and deteriorating trade conditions. As a result, the central bank now expects full-year growth to come in below its earlier forecast of 1-point-5 percent. And they stress that the trajectory is "highly uncertain" — especially with trade negotiations still in flux. On inflation, things are more stable. March's consumer price index rose 2-point-1 percent on-year, while core inflation, which excludes volatile food and energy prices, climbed 1-point-9 percent. Those figures are more or less aligned with projections, which gives the BOK a bit more leeway to focus on growth rather than tightening to rein in prices. Still, a high exchange rate could push some prices up, so it's a balancing act. So, where does this leave the BOK's policy path moving forward? What are analysts expecting? That's where it gets interesting. Until the end of last year, many predicted two rate cuts this year — one in February and another in May. But now, after this hold, the most widely discussed scenario is three or more cuts before the end of the year. The BOK is signaling openness to further easing, but with caution. Any future cuts will depend heavily on data, and that data includes what the U.S. Federal Reserve decides to do. Let's hear what one expert had to say about that. "Tariffs are a major issue, but they are not the only one. One key factor is the U.S. Federal Reserve. Fed Chair Jerome Powell has made it clear that the Fed is in no rush to cut rates. If the Fed keeps rates high, that means the BOK has less room to maneuver without triggering capital outflows." Finally, what about the longer-term direction? Is the BOK shifting its focus? Yes, some experts believe we're seeing a subtle pivot. While the BOK has historically paid close attention to the exchange rate, especially in times of heightened dollar strength, there are signs it's beginning to prioritize the domestic economy more actively. Another expert told us this. "Korea's exchange rate against the dollar is also affected by the dollar index, the Japanese yen, and the Chinese yuan. So, rather than making decisions based solely on the exchange rate, the outlook is that the Bank of Korea will start focusing more on the domestic economy." And that's in line with the BOK's latest statement. They said they'll continue to monitor growth, inflation, household debt, and external conditions, and adjust policy accordingly to strike a balance between stability and support. So, while the easing bias remains intact, the pace and timing of future rate cuts will be highly dependent on how things evolve, both in Seoul and globally. We'll be keeping a close eye on how that plays out. Hye-ryeon, thank you for your report. Thank you for having me.