News

S. Korea automobile exports saw sharp decline in January, impacted Lunar New Year holiday

2025/02/18 17:00

Korea's auto exports lost substantial ground in January owing to fewer working days given the prolonged lunar new year holiday. Our Choi Soo-hyung covers the latest data. South Korea's automobile exports saw a sharp decline last month. Data from the Ministry of Trade, Industry and Energy released on Tuesday shows that the declines were impacted by fewer working days due to the Lunar New Year holiday in the last week of January. The country's auto exports totaled 4-point-9-9 billion dollars in January – nearly 20 percent down from a year ago. While this figure fell short of last year's all-time high for the month, it still marks the second-largest January export value on record. By volume, exports dropped nearly 18 percent, with Hyundai Motor and Kia Motor both seeing double-digit declines. Hyundai shipped over 85 thousand units, down more than 15 percent, while Kia's exports fell nearly 18 percent to just under 77 thousand. Among the smaller auto firms, KG Mobility and Renault Korea recorded export growth, while GM Korea saw a decline of nearly 30 percent. Eco-friendly vehicle exports declined slightly, dropping more than four percent overall. While hybrid and plug-in hybrid exports surged, demand for electric vehicles weakened with EV shipments plunging by nearly 42 percent. As well as fewer working days in January, a high base effect from the record-breaking performance last January also played a role. Following U.S. President Donald Trump's announcement that tariffs could be imposed on automobiles starting in early April, a significant impact is expected. Although the exact plan has not been revealed yet, it is predicted that any decision will greatly affect South Korea, as more than half of its automobile exports go to the U.S. The domestic sales volume in January exceeded 105-thousand units, marking a 9-percent decrease compared to the same month last year. Choi Soo-hyung, Arirang News.

STOCK

2025/02/17 20:00

2025. 2. 17. KOREAN STOCK MARKET KOSPI : 2,610.42 ▲19.37 +0.75% KOSDAQ : 768.48 ▲12.16 +1.61% KOSPI200 : 345.11 ▲2.35 +0.69% ASIAN STOCK MARKET NIKKEI225 : 39,174.25 ▲24.82 +0.06% HANG SENG : 22,616.23 ▼4.10 -0.02% SHANGHAI : 3,355.83 ▲9.11 +0.27% WALL STREET (February 14) DOW JONES : 44,546.08 ▼165.35 -0.37% NASDAQ : 20,026.77 ▲81.13 +0.41% S&P500 : 6,114.63 ▼0.44 -0.01% EXCHANGE RATE USD : 1,441.70 (-1.80) JPY : 950.33 (+4.52) CNY : 198.86 (+0.59) EUR : 1,512.49 (+3.31)

S. Korea sees job growth in Jan., gov't pledges record no. of public sector jobs in Q1

2025/02/14 20:00

Overall employment in Korea rebounded during the first month of this year but by age and sector, the trend remained largely inconsistent. Our Moon Hye-ryeon explains. South Korea’s job market saw a rebound last month, but employment challenges persist, particularly in the construction and manufacturing sectors. According to Statistics Korea’s employment report released on Friday, the number of employed people aged 15 or older reached just under 27-point-9 million in January, marking a year-on-year increase of 135-thousand. This comes following a decline in December. By industry, the health and social welfare sector led job gains, followed by professional, scientific, and technical services and the information and communication sector. However, jobs in construction saw the biggest decline since data collection began due to a slump in the construction sector, alongside a drop in manufacturing jobs for the seventh straight month despite booming semiconductor exports. Retail and wholesale employment also saw losses marking 11 consecutive months of decline. By age group, employment among those aged 60 or older saw the biggest increase, adding 340-thousand jobs. In contrast, younger workers struggled. The number of employed individuals aged 15 to 29 dropped by 218-thousand, the sharpest decline since January 2021. With this latest data, the country's Finance Minister and Acting President Choi Sang-mok pledged a series of measures to vitalize the country's job market during an economic policy meeting on Friday. "We will create over 1-point-2 million public sector jobs by the first quarter the highest number ever through expedited hiring." State-run institutions plan to increase new recruitment from 20-thousand last year to 24-thousand this year, and raise the proportion of long-term internships that are particularly favored by young job seekers. The government also signed an agreement with six major business associations to strengthen employment initiatives in the first half of the year. Beyond direct job creation, Choi outlined plans to allocate seven trillion Korean won just under 4-point-9 billion U.S. dollars in social infrastructure budgets, and 17 trillion Korean won in public institution investments to support the struggling construction sector. Employment and Labor Minister Kim Moon-soo who also attended the meeting, announced the launch of a platform next month to provide tailored job-matching services to young job-seekers looking to find work after graduation. Moon Hye-ryeon, Arirang News.

Ministry of Economy and Finance data shows delay in recovery of domestic demand

2025/02/14 20:00

On the economic front. The authorities forecast a delay in the recovery of domestic demand as well as employment concerns, citing increasing risks at home and abroad. Cha Yun-kyung has more. The Ministry of Economy and Finance announced on Friday that there continue to be delays in the recovery of domestic demand and difficulties in employment in its latest economic green book, a monthly report on the South Korean economy. The ministry stated that domestic demand had shown some signs of recovery in the six months since May last year, however, this slowed from November, in contrast to its expectations, and continues to be in the doldrums. The falls in the indicators for domestic demand, including consumption and investment, have been worsening due to national political crisis and potential U.S. tariffs. Retail sales fell 0-point-6 percent compared to last month, and 3-point-3 percent comparing the same month last year. Negative figures in new employment, for two months in a row, are also drawing attention. The number of young people finding work decreased by 218-thousand, the largest drop since January, 2021. The government concluded that economic sentiment has dampened due to the expansion of domestic and external uncertainties, raising downward pressure on growth. Cha Yun-kyung, Arirang News.

S. Korea's February green book presents bleaker economic assessment

2025/02/14 17:00

And taking into account the Trump administration's tariff plans the Economy and Finance Ministry here has sounded the alarm over the growing presence of risks factors against the South Korean economy. In its latest monthly economic report shared on this Friday the ministry also underscored a host of national concerns such as the reality that domestic spending and construction investment remain sluggish while employment trends remain uneven. February's assessment stands more bleak compared to that shared in January.

S. Korea sees job growth in Jan., gov't pledges record no. of public sector jobs in Q1

2025/02/14 17:00

And on the topic of jobs. Overall employment in Korea rebounded during the first month of this year but by age and sector the trend remained largely inconsistent. Our correspondent Moon Hye-ryeon explains. South Korea's job market saw a rebound last month, but employment challenges persist, particularly in the construction and manufacturing sectors. According to Statistics Korea's employment report released on Friday, the number of employed people aged 15 or older reached just under 27-point-9 million in January, marking a year-on-year increase of 135-thousand. This comes following a decline in December. By industry, the health and social welfare sector led job gains, followed by professional, scientific, and technical services and the information and communication sector. However, jobs in construction saw the biggest decline since data collection began due to a slump in the construction sector, alongside a drop in manufacturing jobs for the seventh straight month despite booming semiconductor exports. Retail and wholesale employment also saw losses --marking 11 consecutive months of decline. By age group, employment among those aged 60 or older saw the biggest increase, adding 340-thousand jobs. In contrast, younger workers struggled. The number of employed individuals aged 15 to 29 dropped by 218-thousand, the sharpest decline since January 2021. With this latest data, the country's Finance Minister and Acting President Choi Sang-mok pledged a series of measures to vitalize the country's job market during an economic policy meeting on Friday. "We will create over 1-point-2 million public sector jobs by the first quarter --the highest number ever --through expedited hiring." State-run institutions plan to increase new recruitment from 20-thousand last year to 24-thousand this year, and raise the proportion of long-term internships that are particularly favored by young job seekers. The government also signed an agreement with six major business associations to strengthen employment initiatives in the first half of the year. Beyond direct job creation, Choi outlined plans to allocate seven trillion Korean won --just under 4-point-9 billion U.S. dollars --in social infrastructure budgets, and 17 trillion Korean won in public institution investments to support the struggling construction sector. Employment and Labor Minister Kim Moon-soo who also attended the meeting, announced the launch of a platform next month to provide tailored job-matching services to young job-seekers looking to find work after graduation. Moon Hye-ryeon, Arirang News.

January sees job growth in S. Korea, but record drop for construction jobs

2025/02/14 10:00

Job growth in South Korea perked back up in the first month of the year, but some sectors saw big declines. Data from Statistics Korea on Friday showed that there were 27-point-8 million people in employment in January a rise of some 135 thousand from the same month the year before. This is due to jobs being added in healthcare and welfare, as well as professional, scientific, and technical services. However, jobs in construction saw the biggest decline since data collection began due to a slump in the construction sector, alongside a drop in manufacturing jobs despite booming semiconductor exports.

K-STEEL AMID TRUMP'S 25% BLANKET TARIFF

2025/02/13 17:00

Welcome to Press Perspective for this Thursday February 13th here in Seoul. I'm Min Sunhee. Starting today our panel session will INLCUDE a WEEKLY focus on sectors of the South Korean industry that look to be affected by Trump tariffs. Accordingly today we touch upon the steel industry and more amid the announcement of the first blanket tariffs of 25 percent on all steel and aluminium imports into the U.S. market. For more I have Steven Borowiec with Japanese news magazine Nikkei Asia here in the studio. Steven as always it's good to have you here. I also have Professor Shin Sang-hyup of International Relations at Kyung Hee University. Professor Shin it's a pleasure. 1) Steven, let's start with Mr. Trump's 25-percent tariff on all steel and aluminium imports into the U.S. market starting mid-March. South Korean steel makers are among those to be much affected. First then, what has been the response here? 2) Steven, Trump tariffs on steel are not new. He imposed them during his first term in office back in 2018 as well. How did South Korea deal with this import duty back then? 3) Steven, Canada is the largest supplier of steel and aluminum to the U.S. How is Canada and its related industries responding? 4) And now, Professor Shin, with regard to Mr. Trump's tariffs on steel and aluminium imports DURING his FIRST term, the World Trade Organization EARLIER ruled them "in violation" of global trade rules. Do remind us about this ruling. 5) Professor Shin, some American businesses are also expected to be negatively affected by Trump tariffs on steel and aluminium imports. What more can you share? 6) Meanwhile, Professor Shin, how capable is South Korea of effectively navigating these trade initiatives by the Trump administration amid its current political paralysis? 7) Steven, also on the local front. What can you tell us about the Korean steel industry and its prospects going forward? 8) Steven, Mr. Trump has also vowed reciprocal tariffs on U.S. trade partners. What exactly does this mean, and how do they look to affect all involved? 9) Professor Shin, speaking as a scholar, what does history tell us about the practice of reciprocal tariffs? 10) Steven, U.S. industry insiders fear U.S. tariffs on steel and aluminium imports will drive up car costs within their country. Do share this outlook with us. All right.

S. Korea's ICT exports in Jan. declined 0.4% on-year due to Lunar New Year holiday

2025/02/13 17:00

On the trade front. South Korea's ICT exports fell 0-point-4-percent on year in January owing to fewer workdays in light of the extended lunar new year holiday. According to the Trade Ministry here overseas shipments of ICT products amounted to nearly 16-point-3 billion U.S. dollars last month. Yet despite the overall decline semiconductor shipments remained strong amid the global race for AI dominance. Chip exports soared past 10 billion U.S. dollars posting 15 consecutive months of on-year growth.

STOCK

2025/02/12 20:00

2025. 2. 12. KOREAN STOCK MARKET KOSPI : 2,548.39 ▲9.34 +0.37% KOSDAQ : 745.18 ▼4.41 -0.59% KOSPI200 : 337.23 ▲0.56 +0.17% ASIAN STOCK MARKET NIKKEI225 : 38,963.70 ▲162.53 +0.42% HANG SENG : 21,857.92 ▲563.06 +2.64% SHANGHAI : 3,346.39 ▲28.33 +0.85% WALL STREET (February 11) DOW JONES : 44,593.65 ▲123.24 +0.28% NASDAQ : 19,643.86 ▼70.41 -0.36% S&P500 : 6,068.50 ▲2.06 +0.03% EXCHANGE RATE USD : 1,453.40 (-0.80) JPY : 945.89 (-9.93) CNY : 198.68 (-0.13) EUR : 1,505.58 (+8.24)

Fed's Powell says U.S. in no rush to cut interest rates on strong economy

2025/02/12 10:00

U.S. Federal Reserve Chairman Jerome Powell has stated that the central bank is not rushing to lower interest rates, describing the economy as "strong." Powell told lawmakers on Monday, that the U.S. economy is strong overall and has made significant progress over the past two years, particularly in labor market conditions. He added that while inflation has moved closer to the Fed's 2-percent target, it remains somewhat elevated. He cautioned against reducing policy restraints too quickly, as doing so could increase demand and push prices higher, reversing progress on inflation. Subtly referencing the Trump administration's latest import taxes, Powell said the Fed's policy is "well positioned to deal with the risks and uncertainties" facing the U.S.

S. Korea's economic growth rate in 2025 slashed to 1.6% with political instability and U.S. trade tariffs

2025/02/11 20:00

The South Korean economy is forecast to grow one-point-six percent this year. Now this is according to a state-run think tank following a downward revision to reflect the prolonged political paralysis here and the broader market ramifications of Trump tariffs. Our correspondent Moon Hye-ryeon reports. South Korea's economic growth projection for the year has been slashed on the back of rising uncertainties with U.S. trade tariffs and continued political instability in the country. In its outlook published on Tuesday, the state-run Korea Development Institute forecasts the economy to grow point-nine percent in the first half of 2025 and two-point-two percent in the second half – bringing the annual growth rate to one-point-six percent. That's down by point-four percentage points from its previous forecast of two percent released in November. This is lower than forecasts from major institutions such as the OECD at two-point-one percent, but similar to the Bank of Korea's projection of one-point-six to one-point-seven percent. The agency noted that the prolonged slump in domestic demand exacerbated by political turmoil in the country, combined with a slowdown in exports, is weighing on economic growth. The construction sector remains in recession while the service sector struggles to recover. Despite strong semiconductor demand, the goods exports were revised down from one-point-nine percent to one-point-five percent – reflecting deteriorating trade conditions. Weak domestic demand is, however, likely to limit inflationary pressure – keeping the KDI's consumer price inflation forecast at one-point-six percent. It is also expected to affect the labor market as sluggish domestic demand limits job growth. These projections, however, come with the KDI assuming that U.S. trade restrictions under the Trump administration would be implemented gradually. The faster-than-expected policy moves have significantly increased uncertainty. "If trade tensions under Trump escalate further or political instability drags on longer than expected, growth could fall below the one-point-six percent we've projected." That being said, the agency pointed out that tariffs on steel and aluminum are unlikely to have a great impact on the country's GDP growth. "Steel and aluminum make up about point-eight percent of our total exports to the U.S., so in the grand scheme of things, it's not a huge portion of our overall portions. If the tariffs do go into effect, these industries would take a significant hit, but in terms of GDP, we don't expect the impact to be that substantial." With weak consumption, slowing exports, and persistent uncertainty both at home and abroad, the KDI's latest outlook signals that the country's economic recovery remains vulnerable. Moon Hye-ryeon, Arirang News.

S. Korea's economic growth rate in 2025 slashed to 1.6% with political instability and U.S. trade tariffs

2025/02/11 17:00

The South Korean economy is forecast to grow one-point-six percent this year. Now this is according to a state-run think tank following a downward revision to reflect the prolonged political paralysis here and the broader market ramifications of Trump tariffs. Our correspondent Moon Hye-ryeon reports. South Korea's economic growth projection for the year has been slashed on the back of rising uncertainties with U.S. trade tariffs and continued political instability in the country. In its outlook published on Tuesday, the state-run Korea Development Institute forecasts the economy to grow point-nine percent in the first half of 2025 and two-point-two percent in the second half – bringing the annual growth rate to one-point-six percent. That's down by point-four percentage points from its previous forecast of two percent released in November. This is lower than forecasts from major institutions such as the OECD at two-point-one percent, but similar to the Bank of Korea's projection of one-point-six to one-point-seven percent. The agency noted that the prolonged slump in domestic demand exacerbated by political turmoil in the country, combined with a slowdown in exports, is weighing on economic growth. The construction sector remains in recession while the service sector struggles to recover. Despite strong semiconductor demand, the goods exports were revised down from one-point-nine percent to one-point-five percent – reflecting deteriorating trade conditions. Weak domestic demand is, however, likely to limit inflationary pressure – keeping the KDI's consumer price inflation forecast at one-point-six percent. It is also expected to affect the labor market as sluggish domestic demand limits job growth. These projections, however, come with the KDI assuming that U.S. trade restrictions under the Trump administration would be implemented gradually. The faster-than-expected policy moves have significantly increased uncertainty. "If trade tensions under Trump escalate further or political instability drags on longer than expected, growth could fall below the one-point-six percent we've projected." That being said, the agency pointed out that tariffs on steel and aluminum are unlikely to have a great impact on the country's GDP growth. "Steel and aluminum make up about point-eight percent of our total exports to the U.S., so in the grand scheme of things, it's not a huge portion of our overall portions. If the tariffs do go into effect, these industries would take a significant hit, but in terms of GDP, we don't expect the impact to be that substantial." With weak consumption, slowing exports, and persistent uncertainty both at home and abroad, the KDI's latest outlook signals that the country's economic recovery remains vulnerable. Moon Hye-ryeon, Arirang News.

McDonald's posts biggest U.S. sales decline in nearly five years

2025/02/11 10:00

Over in the United States, McDonald's reported a 1.4% decline in the country's same-store sales, in the fourth quarter of last year, marking its most significant domestic sales drop in five years. The downturn is attributed to an E. coli outbreak in October, linked to the fast food chain's Quarter Pounder burgers, which affected over a hundred individuals across 14 states and resulted in one death. Despite challenges, global same-store sales increased by 0.4%, driven by strong performances in international markets, particularly in the Middle East and Japan. Overall, the company's fourth-quarter revenue remained steady at 6.4 billion U.S. dollars.

KDI warns of growing risks for S. Korea’s economy for two consecutive months

2025/02/10 20:00

The Korean economy continues to face external risk factors especially in light of the Trump administration's tariff campaign and its implications on global trade. Moon Hye-ryeon reports. Concerns about rising risks to South Korea's economy are being raised in light of trade tensions between Washington and Beijing. On Monday, South Korea's state-run Korea Development Institute reiterated these concerns for the second consecutive month in its February Economic Trends report. The agency stated that the domestic economy remains in a moderate growth phase in terms of production, but deteriorating external conditions are increasing risks. The report emphasized the escalating trade disputes, particularly involving the United States, as well as persistent political instability in South Korea – both of which have heightened concerns over worsening trade conditions. The KDI had first raised alarm about growing downside risks in its January Economic Trends report — marking the first such warning since January 2023. The report highlights sluggish domestic demand, with private consumption and construction investment recovering at a slower pace than expected. At the same time, export growth – previously a key driver of the economy – is beginning to slow, particularly in sectors excluding semiconductors. The KDI noted that high interest rates and weakened consumer sentiment due to political instability have contributed to continued sluggish consumption. It added that retail sales have continued to decline across most categories, extending the downturn in goods consumption. Amid prolonged, weak domestic demand, the number of employed workers declined in December, signaling a slowdown in job growth. Investment trends were mixed. While facility investment, particularly in the semiconductor sector, showed resilience, construction investment continued its steep decline due to a significant drop in completed projects. Financial markets also remain volatile due to external risks, particularly uncertainties surrounding the new U.S. Trump administration. On inflation, the KDI noted that recent increases in the exchange rate and global oil prices have contributed to higher consumer price growth, but weak domestic demand is exerting downward pressure on inflation. In January, South Korea's consumer prices rose by 2-point-2 percent year-on-year. However, the KDI suggested that if private consumption remains sluggish, inflation is likely to slow in the coming months. As concerns over weak domestic demand, slowing exports, and external uncertainties grow, the KDI's continued warnings signal heightened risks for South Korea's economic outlook in the months ahead. Moon Hye-ryeon, Arirang News.

What Trump's 25% tariffs mean for S. Korea's steel, automobile industry

2025/02/10 20:00

In related news. South Korean exporters and manufacturers are keeping tabs on the situation as they did during Trump's first term. Our Lee Soo-jin has more. South Korean companies are bracing themselves for the potential impact of Trump's universal tariff threat on their production costs and global competitiveness. "Yeah. Any steel coming into the United States is going to have a 25% tariff. Aluminum too." The import tax is drawing global attention because unlike last week's tariffs, this will be the first time in Trump's second term that a tariff measure is targeting all countries. And Korea is one of those that is expected to be affected, as it is a major steel exporter to the U.S., and its car manufacturers with plants there rely on imported steel and aluminum for car production. "Our main export items to the United States are items like vehicles and semiconductors. But if tariffs are imposed, the competitiveness of our products will likely take a big hit." But this isn't the first time that Trump has imposed a 25 percent on all imports of steel, as he did so previously in 2018 during his first term. South Korea at the time negotiated a deal with the Trump administration whereby it was granted a tariff-free quota for steel exports amounting to around 70 percent of the average amount of steel shipped annually to the U.S. As anything above that limit was subject to the 25 percent tariff, it reduced the volume of steel imports from South Korea. With universal tariffs also expected during his second term, Korean companies had already begun exploring ways to expand investments in the U.S. to minimize related risks. Hyundai Steel, for one, is considering building a steel mill in the U.S. to produce automotive steel sheets, while Hyundai Motor Group plans to further expand local vehicle production there. But compared to other nations facing a 50 percent tariff, the impact on Korea may be of less concern, according to the expert. "While universal tariffs will directly impact our country, it's hard to say that we'll be more impacted than others as they target all nations." The government, however,.. is remaining vigilant with the trade and industry ministry announcing on Monday that it plans to closely monitor the situation and work with the steel industry to come up with response measures. Lee Soo-jin, Arirang News.

KDI warns of growing risks for S. Korea’s economy for two consecutive months

2025/02/10 17:00

The Korean economy continues to face external risk factors especially in light of the Trump administration's tariff campaign and its implications on global trade. Our correspondent Moon Hye-ryeon reports. Concerns about rising risks to South Korea's economy are being raised in light of trade tensions between Washington and Beijing. On Monday, South Korea's state-run Korea Development Institute reiterated these concerns for the second consecutive month in its February Economic Trends report. The agency stated that the domestic economy remains in a moderate growth phase in terms of production, but deteriorating external conditions are increasing risks. The report emphasized the escalating trade disputes, particularly involving the United States, as well as persistent political instability in South Korea – both of which have heightened concerns over worsening trade conditions. The KDI had first raised alarm about growing downside risks in its January Economic Trends report — marking the first such warning since January 2023. The report highlights sluggish domestic demand, with private consumption and construction investment recovering at a slower pace than expected. At the same time, export growth – previously a key driver of the economy – is beginning to slow, particularly in sectors excluding semiconductors. The KDI noted that high interest rates and weakened consumer sentiment due to political instability have contributed to continued sluggish consumption. It added that retail sales have continued to decline across most categories, extending the downturn in goods consumption. Amid prolonged, weak domestic demand, the number of employed workers declined in December, signaling a slowdown in job growth. Investment trends were mixed. While facility investment, particularly in the semiconductor sector, showed resilience, construction investment continued its steep decline due to a significant drop in completed projects. Financial markets also remain volatile due to external risks, particularly uncertainties surrounding the new U.S. Trump administration. On inflation, the KDI noted that recent increases in the exchange rate and global oil prices have contributed to higher consumer price growth, but weak domestic demand is exerting downward pressure on inflation. In January, South Korea's consumer prices rose by 2-point-2 percent year-on-year. However, the KDI suggested that if private consumption remains sluggish, inflation is likely to slow in the coming months. As concerns over weak domestic demand, slowing exports, and external uncertainties grow, the KDI's continued warnings signal heightened risks for South Korea's economic outlook in the months ahead. Moon Hye-ryeon, Arirang News.

[WEEKLY FOCUS] Here's how Trump's tariffs could affect S. Korea

2025/02/08 12:00

Economies around the world are bracing for a potential trade war triggered by recent tariff announcements by U.S. President Donald Trump. For this week's Weekly Focus, we take a closer look at this matter with our trade correspondent Lee Soo-jin. Welcome. Thank you for having me. 1. To start us off, can you tell us what has happened for the past couple of days? Sure, so it has been a rather tumultuous couple of days on the economic front as Trump's tariff threats sparked concerns of a global trade war. On Saturday local time Trump announced 25-percent tariffs on goods from Canada and Mexico, while China was hit with a 10-percent tariff on various existing duty rates. Let's take a listen to what Trump said on tariffs. "And, I don't want to use countries, I don't want to use names, but tariffs are very powerful, both economically and in getting everything else you want." And what he wanted was for the three countries to address trade imbalances, national security concerns related to illegal immigration and the influx of fentanyl into the United States. And while the tariffs were to go into effect on Tuesday, Trump on Monday, decided to pause the implementation of the tariffs for Canada and Mexico, for at least 30 days. This comes as Canada agreed to implement a 1-point-3 billion U.S. dollar border plan which includes reinforcing the border with nearly 10-thousand front-line personnel as well as strengthening resources to respond to fentanyl and money laundering. And Mexico,.. agreed to place 10-thousand National Guard troops along the U.S. border to prevent the flow of drugs. 2. But a trade war between the U.S. and China looks like it's heating up again, setting the stage for another long and costly battle, much like during Trump's first term. Right, so while U.S. tariffs on Canada and Mexico have been delayed for 30 days, China, was given no such reprieve and Trump's 10-percent tariff on Chinese products took effect just after midnight Tuesday. Within minutes, China's Finance Ministry announced retaliatory tariffs of 15 percent on U.S. coal and LNG, as well as 10 percent on crude oil, farm equipment, and certain automobiles, to take effect on February 10th. And,.. according to this expert, China's choice of which items to impose tariffs on was deliberate. "The phenomenon here is that agricultural pick-up trucks will impact agricultural are that are very strong supporters of Donald Trump. Another targeted item was LNG, LNG companies that are also strong supporters of Trump." And China on Wednesday, just one day after Trump raised border taxes on Chinese goods, filed a complaint with the World Trade Organization, calling the tariffs "discriminatory and protectionist" and a violation of trade rules. 3. What do Trump's tariffs mean for South Korea? Sure, so South Korea may actually see both risks and opportunities, in regards to the tariffs on China. To start out with the positive, the tariffs imposed on China mean that Korean exporters may gain a competitive edge in supplying products that China previously dominated. This means that U.S. companies may shift their supply chains to South Korean firms. Let's take a listen. "In markets like the semiconductor industry, companies like SK hynix already have a strong presence, and if tariffs are imposed on China, South Korean products could gain an even greater competitive advantage." As semiconductors are South Korea's top export item, this would boost the country's trade surplus but also enhance the global competitiveness of Korean chipmakers like SK hynix. But the expected drop in exports of Chinese goods to the U.S. may reduce Chinese orders for South Korea's key intermediate goods such as chips, display panels, and batteries. Here's what the same expert said. "Our country's export structure depends on selling intermediate goods to China, for them to be assembled into the final product for export to other countries. So, if demand for China's goods declines, demand for these intermediate goods will also decline." More than 85 percent of Korea's exports to China were intermediate goods such as semiconductors, displays and wireless communication components, according to the Korea International Trade Association. It's also important to note that there are also growing concerns about the possibility of tariffs on the EU and South Korea as well as sector-specific tariffs on products such as semiconductors and steel. 4. How should the government and Korean companies respond to these ongoing tariff threats? Well, for one,.. staying proactive will be key in this turbulent trade environment. And the South Korean government is already doing so through measures announced on Wednesday that include establishing a "Strategic Advanced Industry Fund," worth over 34 trillion Korean won, or around 23 billion U.S. dollars to boost industrial competitiveness. Let's take a listen. "Ongoing global trade uncertainties, including additional tariffs on China, require close attention. We will establish the "Strategic Advanced Industry Fund" at the Industrial Bank of Korea to support high-tech sectors like batteries and biotech." The government also plans to carry out other industry-specific measures such as strengthening U.S. outreach for semiconductor and battery companies, diversifying markets for the automotive sector, and mobilizing task forces. As for the private sector,.. SK Group chairman Chey Tae-won will lead a delegation to Washington, D.C. on the 19th to discuss response strategies, with a meeting with Trump reportedly under discussion. Here's why this is important at this time. "While Trump has not targeted Korea directly, he's threatening tariffs on virtually everybody. he said he wanted to replace subsidies for semiconductor factories with high tariffs. " And moving forward here's what companies that have factories in the U.S. can do,.. according to the expert I spoke to. "Many South Korean companies have factories in Republican-leaning U.S. areas, and by working with local politicians, they can argue that these tariffs could hinder job creation and investment." Alright, thank you for your report today. Thank you for having me.

Fitch rates S. Korea's credibility 'AA-' amid political uncertainty

2025/02/07 10:00

International credit rating agency Fitch has kept South Korea's credit rating at 'AA-minus', maintaining a stable outlook for the country. Fitch reaffirmed South Korea's rating on Thursday, citing strong external finances, stable economic performance, and a dynamic export sector. It believes the current political uncertainty will have minimal short-term impact on Korea's economy. While acknowledging ongoing political risks, Fitch said it does not expect them to significantly undermine the institutions or governance of South Korea. Growth is forecast to slow in 2025, but Fitch said recovery is expected in 2026, supported by improving consumption and investment.

STOCK

2025/02/06 20:00

2025. 2. 6. KOREAN STOCK MARKET KOSPI : 2,536.75 ▲27.48 +1.10% KOSDAQ : 740.32 ▲9.34 +1.28% KOSPI200 : 336.53 ▲4.06 +1.22% ASIAN STOCK MARKET NIKKEI225 : 39,066.53 ▲235.05 +0.61% HANG SENG : 20,891.62 ▲294.53 +1.43% SHANGHAI : 3,270.66 ▲41.17 +1.27% WALL STREET (February 5) DOW JONES : 44,873.28 ▲317.24 +0.71% NASDAQ : 19,692.33 ▲38.32 +0.19% S&P500 : 6,061.48 ▲23.60 +0.39% EXCHANGE RATE USD : 1,447.70 (+3.40) JPY : 949.47 (+7.18) CNY : 198.67 (+0.33) EUR : 1,503.80 (+2.67)