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Stock
2025/04/08 20:00
2025. 4. 8. KOREAN STOCK MARKET KOSPI : 2,334.23 ▲6.03 +0.26% KOSDAQ : 658.45 ▲7.15 +1.10% KOSPI200 : 310.03 ▲0.43 +0.14% ASIAN STOCK MARKET NIKKEI225 : 33,012.58 ▲1,876.00 +6.03% HANG SENG : 20,127.68 ▲299.38 +1.51% SHANGHAI : 3,145.55 ▲48.97 +1.58% WALL STREET (April 7) DOW JONES : 37,965.60 ▼349.26 -0.91% NASDAQ : 15,603.26 ▲15.47 +0.10% S&P500 : 5,062.25 ▼11.83 -0.23% EXCHANGE RATE USD : 1,473.20 (+5.40) JPY : 998.68 (-9.53) CNY : 200.59 (+0.12) EUR : 1,616.76 (+1.81)
S. Korea logged current account surplus for 22nd straight month in February
2025/04/08 20:00
For the twenty-second month in a row, Korea's current account remained in the black with a surplus of over 7-billion dollars in February. Lee Soo-jin covers the latest findings. South Korea's current account stayed in the black for the 22nd month in a row in February. According to data from the Bank of Korea on Tuesday, the country logged a near 7-point-2 billion U.S. dollar current account surplus in the second month of the year. This also marks a sharp increase from January's surplus , when there were fewer working days on account of the Lunar New Year holiday. It comes as the goods balance, which tracks exports and imports of products and accounts for the largest portion of the current account, recorded an 8-point-2 billion dollar surplus , also marking a significant increase from the previous month. This extends the surplus streak for the goods balance to 23 consecutive months. Exports rose 3-point-6 percent compared to the previous year on strong demand for computers, computers, pharmaceuticals, cars, and IT equipment. But outbound shipments of chips dropped compared to the previous year, a decline recorded for the first time since October 2023. "Exports of lower-value DDR4 memory chips fell slightly in February due to price drops, but picked up again in March despite competition from China. Still, it's something we'll need to watch closely." The size of the country's service balance once again remained in the red, with the deficit deepening compared to the previous month. This was mostly due to the larger shortfall in the intellectual property account from increased payments by domestic firms to overseas companies for R&D-related royalty fees. When asked about when the impact of U.S. President Donald Trump's tariffs will be felt, the same official said the current account surplus will likely continue through March, with effects starting to show in April, but that while sectors like autos and auto parts will be affected, the impact is expected to be gradual, not immediate. Lee Soo-jin, Arirang News.
Won-to-dollar exchange rate hits 1,473.2 won, highest since global financial crisis
2025/04/08 20:00
As U.S. tariffs rattle global financial markets, the South Korean currency lost substantial ground against the U.S. dollar, weakening to one-thousand-4-hundred-73 won at one point during trade on Tuesday afternoon. This is the won's weakest level against the greenback since the global financial crisis. Accordingly, at an emergency meeting of the country's top economic officials convened by Finance Minister Choi Sang-mok , authorities acknowledged the vulnerability of the local financial market to external risk factors and agreed to remain vigilant in anticipation of further fluctuations.
Samsung posts Q1 operating profit of US$ 4.5 billion
2025/04/08 20:00
In the corporate arena. Samsung Electronics posted what pundits are calling a "resilient" first-quarter profit on the back of strong semiconductor and smartphone demand. Our Shin Se-byuck has more. Samsung Electronics, in its earnings guidance on Tuesday, estimated a first quarter operating profit of 6-point-6 trillion Korean won or roughly 4-point-5 billion U.S. dollars. The figure beats market expectations of around 3-point-5 billion dollars, thanks to strong sales of the tech giant's latest flagship smartphones, despite being down point-1-5 percent from a year earlier. The market had projected weaker earnings due to delayed shipments of its fifth-gen HBM chips and falling memory prices, but brisk sales of the Galaxy S25, launched in February, pushed results well above forecasts. Stronger-than-expected DRAM shipments also contributed to the upbeat performance. Revenue rose nearly 10 percent on-year to 79 trillion won or around 54 billion dollars, close to the all-time high of 79-point-1 trillion won posted in the third quarter of last year. Samsung did not disclose earnings by business division this time. However, market watchers estimate the MX division, which oversees smartphones, posted an operating profit of over 2-point-7 billion dollars. The Device Solutions division, responsible for semiconductors, is projected to have logged an operating profit of around 681 million dollars. With memory chip prices on the rise, expectations are growing for Samsung's performance in the coming quarters. But an expert warns that uncertainties remain. "Because of the tariffs and because of the uncertainty and because of the slowing down of the American economy, I think performances for the second quarter would not be as dramatic as the first quarter and possibly are significantly lower than the first quarter." The company's final earnings report will be released later this month. Shin Se-byuck, Arirang News.
Samsung posts Q1 operating profit of US$ 4.5 billion
2025/04/08 17:00
In the corporate arena. Samsung Electronics posted what pundits are calling a "RESILIENT" first-quarter profit on the back of strong semiconductor and smartphone demand. Our Shin Se-byuck has more. Samsung Electronics, in its earnings guidance on Tuesday, estimated a first quarter operating profit of 6-point-6 trillion Korean won or roughly 4-point-5 billion U.S. dollars. The figure beats market expectations of around 3-point-5 billion dollars, thanks to strong sales of the tech giant's latest flagship smartphones, despite being down point-1-5 percent from a year earlier. The market had projected weaker earnings due to delayed shipments of its fifth-gen HBM chips and falling memory prices, but brisk sales of the Galaxy S25, launched in February, pushed results well above forecasts. Stronger-than-expected DRAM shipments also contributed to the upbeat performance. Revenue rose nearly 10 percent on-year to 79 trillion won or around 54 billion dollars, close to the all-time high of 79-point-1 trillion won posted in the third quarter of last year. Samsung did not disclose earnings by business division this time. However, market watchers estimate the MX division, which oversees smartphones, posted an operating profit of over 2-point-7 billion dollars. The Device Solutions division, responsible for semiconductors, is projected to have logged an operating profit of around 681 million dollars. With memory chip prices on the rise, expectations are growing for Samsung's performance in the coming quarters. But an expert warns that uncertainties remain. "Because of the tariffs and because of the uncertainty and because of the slowing down of the American economy, I think performances for the second quarter would not be as dramatic as the first quarter and possibly are significantly lower than the first quarter." The company's final earnings report will be released later this month. Shin Se-byuck, Arirang News.
Won-to-dollar exchange rate hits 1,473.2 won, highest since global financial crisis
2025/04/08 17:00
And as U.S. tariffs rattle global financial markets the South Korean currency lost substantial ground against the U.S. dollar weakening to one-thousand-4-hundred-73 won at one point during trade on this Tuesday afternoon. Now this is the won's weakest level against the greenback since the global financial crisis. Accordingly at an emergency meeting of the country's top economic officials convened by Finance Minister Choi Sang-mok authorities acknowledged the vulnerability of the local financial market to external risk factors and agreed to remain vigilant in anticipation of further fluctuations.
S. Korea logged current account surplus for 22nd straight month in February
2025/04/08 17:00
On a bright note now. For the twenty-second month in a row Korea's current account remained in the black with a surplus of over 7-point-1 billion U.S. dollars in February. Our correspondent Lee Soo-jin covers the latest findings. South Korea's current account stayed in the black for the 22nd month in a row in February. According to data from the Bank of Korea on Tuesday, the country logged a near 7-point-2 billion U.S. dollar current account surplus in the second month of the year. This also marks a sharp increase from January's surplus , when there were fewer working days on account of the Lunar New Year holiday. It comes as the goods balance, which tracks exports and imports of products and accounts for the largest portion of the current account, recorded an 8-point-2 billion dollar surplus , also marking a significant increase from the previous month. This extends the surplus streak for the goods balance to 23 consecutive months. Exports rose 3-point-6 percent compared to the previous year on strong demand for computers, computers, pharmaceuticals, cars, and IT equipment. But outbound shipments of chips dropped compared to the previous year, a decline recorded for the first time since October 2023. "Exports of lower-value DDR4 memory chips fell slightly in February due to price drops, but picked up again in March despite competition from China. Still, it's something we'll need to watch closely." The size of the country's service balance once again remained in the red, with the deficit deepening compared to the previous month. This was mostly due to the larger shortfall in the intellectual property account from increased payments by domestic firms to overseas companies for R&D-related royalty fees. When asked about when the impact of U.S. President Donald Trump's tariffs will be felt, the same official said the current account surplus will likely continue through March, with effects starting to show in April, but that while sectors like autos and auto parts will be affected, the impact is expected to be gradual, not immediate. Lee Soo-jin, Arirang News.
Samsung posts Q1 operating profit of US$ 4.5 bil.
2025/04/08 10:00
Samsung Electronics, in its earnings guidance on Tuesday, estimated a first quarter operating profit of 6-point-6 trillion Korean won or roughly 4-point-5 billion U.S. dollars. The figure beats market expectations of around 3-point-5 billion dollars, thanks to strong sales of the tech giant's latest flagship smartphones, despite being down point-1-5 percent from a year earlier. The market had projected weaker earnings due to delayed shipments of its fifth-gen HBM chips and falling memory prices, but brisk sales of the Galaxy S25, launched in February, pushed results well above forecasts. Revenue rose nearly 10 percent on-year to 79 trillion won or around 54 billion dollars, close to the all-time high of 79-point-1 trillion won posted in the third quarter of last year.
Seoul pledges to stabilize supply chains, support SMEs amid trade uncertainties
2025/04/08 10:00
With rising trade tensions, South Korean authorities are rolling out measures to support local businesses. During an economic ministerial meeting on Tuesday, Finance Minister Choi Sang-mok pointed out that concerns are rising about the impact on domestic industries of the higher-than-expected U.S. reciprocal tariffs. As a result, Seoul will be allocating approximately 3 to 4 trillion Korean won over 2 billion U.S. dollars in a supplementary budget next week to stabilize supply chains and provide support for small and medium sized businesses. In another meeting with finance chiefs, Choi called for close monitoring of the volatile stock market in response to trade uncertainties.
S. Korea logs current account surplus for 22nd straight month in Feb.
2025/04/08 10:00
South Korea's current account stayed in the black for the 22nd month in a row in February. According to data from the Bank of Korea on Tuesday, the country logged a 7-point-2 billion U.S. dollar current account surplus in the second month of the year. This marks a sharp increase from January's surplus thanks to the easing of disruptions caused by fewer working days during the Lunar New Year holiday the month before. And it comes as exports rose 3-point-6 percent compared to the previous year on strong demand for computers, pharmaceuticals, cars, and IT equipment.
Massive sell-off in S. Korea stock market; sidecar triggered by KOSPI 200 futures index
2025/04/07 20:00
Major U.S. tariffs are sending shock waves across global stock markets. Today, Korean stocks were in freefall, down over 5-percent. Trading had to be halted in the morning to ward off panic selling. Lee Soo-jin reports. U.S. President Donald Trump's tariff announcements have triggered massive sell-offs across South Korea's stock market. The Korea Exchange at 9:12 AM on Monday, activated a sell-side sidecar for the first time in eight months, when the KOSPI 200 futures index fell 5-point-19 percent to 312-point-05. A sidecar is triggered when the KOSPI 200 futures index rises or falls by 5 percent or more and stays there for at least one minute. On Monday, the sidecar was activated for five minutes. And stock indexes also took a hit amid mounting investor concerns over the impact of U.S. tariffs. Both the benchmark KOSPI and the tech-heavy KOSDAQ closed down more than five percent, the KOSPI down 5-point-57 percent to around 2-thousand-3-hundred-28, and the KOSDAQ 5-point-25 percent to 6-hundred-51. But one expert said decline of this size is likely a temporary phenomenon, which is why a circuit breaker --triggered when the KOSPI and KOSDAQ indexes fall by 8 percent or more --is unlikely to be activated. "Today's market decline was likely driven by last Friday's slump in the U.S. market and President Trump's hardline stance over the weekend, which led to a 3 to 4 percent drop in U.S. futures that triggered foreign investor sell-offs. As such, the downturn is unlikely to continue for long." The loss was led by foreign investors offloading shares as they reacted to sharp losses in U.S. markets. On Friday local time, Wall Street suffered sharp losses, with the broad-based S&P 500 closing down 6 percent, the tech-heavy Nasdaq 5-point-8 percent. And the Dow Jones fell around 5-point-5 percent. This marked the second straight day of major losses, with the S&P and Dow Jones both suffering the biggest one-day drops since June 2020 on Thursday. In the foreign exchange market on Monday, the Korean won weakened against the dollar, closing at around 1-thousand-467, down 33-point-7 won from the previous session after briefly topping 1-thousand-470 during intraday trading. The same expert said this reflects fears of a potential global economic downturn, noting that Korea's exchange rate with the dollar has surpassed the 1-thousand-400 won mark three times in the past, during the 1997 IMF crisis, the 2008 financial crisis, and the U.S. Fed's aggressive rate hikes in 2022. Lee Soo-jin, Arirang News.
Stock
2025/04/07 20:00
2025. 4. 7. KOREAN STOCK MARKET KOSPI : 2,328.20 ▼137.22 (-5.57%) KOSDAQ : 651.30 ▼36.09 (-5.25%) KOSPI200 : 309.60 ▼19.07 (-5.80%) ASIAN STOCK MARKET NIKKEI225 : 31,136.58 ▼2,644.00 -7.83% HANG SENG : 19,828.30 ▼3,021.51 -13.22% SHANGHAI : 3,096.58 ▼245.43 -7.34% WALL STREET (April 4) DOW JONES : 38,314.86 ▼2,231.07 -5.50% NASDAQ : 15,587.79 ▼962.81 -5.82% S&P500 : 5,074.08 ▼322.44 -5.97% EXCHANGE RATE USD : 1,467.80 (+33.70) JPY : 1,008.21 (+26.39) CNY : 200.47 (+2.65) EUR : 1,614.95 (+28.19)
Growing downside risks to S. Korean economy amid U.S. tariff pressures: KDI
2025/04/07 20:00
A state-run think tank has highlighted the presence of greater external risk factors to the Korean economy, notably U.S. trade barriers. Moon Hye-ryeon has more. A state-run think tank has diagnosed continued downside risks to South Korea's economy for the fourth consecutive month, citing growing uncertainties in global trade. In the April edition of its monthly economic trends report, the Korea Development Institute stated that external conditions are "rapidly deteriorating" in light of the recent tariff announcement from the United States, and paired with the slowdown in both domestic and global demand, the situation is exacerbating. Last week, Washington announced that it would impose tariffs of 25 percent on South Korean goods, and a separate 25 percent tariff on global automobiles and auto parts. Automobiles are South Korea's top export to the United States, with nearly half of the country's total auto shipments headed there last year. The KDI noted that if the U.S. continues to escalate its protectionist trade measures – as U.S. President Trump has threatened to do – it could further erode corporate sentiment and hinder investment and export growth. While South Korea's exports rose by more than three percent in March, the think tank warned that this recovery remains fragile, with exports in the first quarter of the year showing a contraction due to a slowdown in the ICT sector. The KDI also pointed to continued sluggish consumer spending as another drag on the economy. While internal consumption of durable goods briefly rebounded thanks to a temporary tax cut on automobiles for the first half of the year, overall retail sales for January and February were down with persistent weakness in sales of semi-durable and non-durable goods. Consumer sentiment in March stayed pessimistic, with the central bank's Consumer Sentiment Index data showing that it has yet to recover to levels seen before the martial law declaration last December. Going forward, the think tank stressed the importance of closely monitoring both global developments and domestic demand to avoid further drag on recovery. Moon Hye-ryeon, Arirang News.
Growing downside risks to S. Korean economy amid U.S. tariff pressures: KDI
2025/04/07 17:00
And as expected a state-run think tank has highlighted the presence of greater external risk factors to the Korean economy notably U.S. trade barriers. Our correspondent Moon Hye-ryeon has more. A state-run think tank has diagnosed continued downside risks to South Korea's economy for the fourth consecutive month, citing growing uncertainties in global trade. In the April edition of its monthly economic trends report, the Korea Development Institute stated that external conditions are "rapidly deteriorating" in light of the recent tariff announcement from the United States, and paired with the slowdown in both domestic and global demand, the situation is exacerbating. Last week, Washington announced that it would impose tariffs of 25 percent on South Korean goods, and a separate 25 percent tariff on global automobiles and auto parts. Automobiles are South Korea's top export to the United States, with nearly half of the country's total auto shipments headed there last year. The KDI noted that if the U.S. continues to escalate its protectionist trade measures – as U.S. President Trump has threatened to do – it could further erode corporate sentiment and hinder investment and export growth. While South Korea's exports rose by more than three percent in March, the think tank warned that this recovery remains fragile, with exports in the first quarter of the year showing a contraction due to a slowdown in the ICT sector. The KDI also pointed to continued sluggish consumer spending as another drag on the economy. While internal consumption of durable goods briefly rebounded thanks to a temporary tax cut on automobiles for the first half of the year, overall retail sales for January and February were down with persistent weakness in sales of semi-durable and non-durable goods. Consumer sentiment in March stayed pessimistic, with the central bank's Consumer Sentiment Index data showing that it has yet to recover to levels seen before the martial law declaration last December. Going forward, the think tank stressed the importance of closely monitoring both global developments and domestic demand to avoid further drag on recovery. Moon Hye-ryeon, Arirang News.
Massive sell-off in S. Korea stock market; sidecar triggered by KOSPI 200 futures index
2025/04/07 17:00
Well regardless of those remarks by Mr. Trump the Korean stock market tumbled during early trade on this Monday with a circuit breaker going into effect briefly in the morning to ward off panic selling. Our correspondent Lee Soo-jin reports. U.S. President Donald Trump's tariff announcements have triggered massive sell-offs across South Korea's stock market. The Korea Exchange at 9:12 AM on Monday, activated a sell-side sidecar for the first time in eight months, when the KOSPI 200 futures index fell 5-point-19 percent to 312-point-05. A sidecar is triggered when the KOSPI 200 futures index rises or falls by 5 percent or more and stays there for at least one minute. On Monday, the sidecar was activated for five minutes. And stock indexes also took a hit amid mounting investor concerns over the impact of U.S. tariffs. Both the benchmark KOSPI and the tech-heavy KOSDAQ closed down more than five percent, the KOSPI down 5-point-57 percent to around 2-thousand-3-hundred-28, and the KOSDAQ 5-point-25 percent to 6-hundred-51. But one expert said decline of this size is likely a temporary phenomenon, which is why a circuit breaker --triggered when the KOSPI and KOSDAQ indexes fall by 8 percent or more --is unlikely to be activated. "Today's market decline was likely driven by last Friday's slump in the U.S. market and President Trump's hardline stance over the weekend, which led to a 3 to 4 percent drop in U.S. futures that triggered foreign investor sell-offs. As such, the downturn is unlikely to continue for long." The loss was led by foreign investors offloading shares as they reacted to sharp losses in U.S. markets. On Friday local time, Wall Street suffered sharp losses, with the broad-based S&P 500 closing down 6 percent, the tech-heavy Nasdaq 5-point-8 percent. And the Dow Jones fell around 5-point-5 percent. This marked the second straight day of major losses, with the S&P and Dow Jones both suffering the biggest one-day drops since June 2020 on Thursday. In the foreign exchange market on Monday, the Korean won weakened against the dollar, closing at around 1-thousand-467, down 33-point-7 won from the previous session after briefly topping 1-thousand-470 during intraday trading. The same expert said this reflects fears of a potential global economic downturn, noting that Korea's exchange rate with the dollar has surpassed the 1-thousand-400 won mark three times in the past, during the 1997 IMF crisis, the 2008 financial crisis, and the U.S. Fed's aggressive rate hikes in 2022. Lee Soo-jin, Arirang News.
"No postponing" of tariffs: Lutnick
2025/04/07 10:00
And just hours before the shock to the South Korean stock market on Monday, the U.S. confirmed the recent reciprocal tariffs imposed by Washington will not be delayed and will begin on April 9th. Lee Seung-jae has the details. U.S. Commerce Secretary Howard Lutnick said Sunday that U.S. President Donald Trump will go ahead with reciprocal tariffs announced last week, stressing that there would be no postponement. Speaking to CBS News the commerce secretary stressed the Trump administration's move to close all potential loopholes in the tariff policy. Reaffirming that the sweeping reciprocal tariffs will go into effect on April 9th, as scheduled, Lutnick shot down any idea that Trump would pause for negotiations, saying tariffs would remain in place for "days and weeks." Meanwhile,.. as Wall Street took a dive after the announcement of the reciprocal tariffs last week, U.S. Treasury Secretary Scott Bessent dismissed the idea that the levies would cause a recession in the U.S. Speaking to NBC on Sunday, Bessent said he wasn't worried about last week's stock market sell-off, adding that the market has consistently underestimated President Trump. He stressed that there's no reason that the U.S. would have to "price in a recession." Bessent also said that more than 50 countries have begun negotiating with the U.S. since the announcement of the reciprocal tariffs. The comments go in line with Trump's remarks last week that "every" country has called the U.S. for talks. "What we have is we have a set of tariffs based on what they've been charging us. That's reciprocal. And those tariffs have come in and every country's called us. That's the beauty of what we do. We put ourselves in the driver's seat. If we would have asked some of these countries, almost most of these countries, to do us a favor, they would have said no. Now they'll do anything for us." Neither Bessent nor any other U.S official named the countries that have begun holding talks with Washington over the reciprocal tariffs. Lee Seung-jae, Arirang News.
Massive sell-off in S. Korea stock market; sidecar triggered by KOSPI 200 futures index
2025/04/07 10:00
U.S. President Donald Trump's tariff announcements have triggered massive sell-offs across South Korea's stock market. As of 9:02 AM on Monday, the KOSPI index stood at 2-thousand-352-point-72, down more than 4 percent from the previous session, while the tech-heavy KOSDAQ index fell by more than 3 percent. And the KOSPI 200 futures index fell 5-point-19 percent, triggering a sell-side sidecar for the first time in eight months at 9:12 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 one minute.
Seoul weighs tariff strategy, considers relief for auto sector
2025/04/06 18:00
Korea is reviewing options to tackle U.S. President Trump's major tariffs on America's trading partners. Separately, it's preparing a financial support package worth 2-billion dollars to help industries hit by the trade war. Our Moon Hye-ryeon has the details. As the United States imposes a 25 percent reciprocal tariff on South Korean goods, Seoul is cautiously preparing its negotiation strategy -including plans to dispatch its top trade official to Washington. The government is reportedly analyzing broader trade dynamics, as the U.S. appears to have based the new tariffs on trade surpluses rather than a detailed policy review. With countries like Vietnam also facing steep duties, companies such as Samsung -which produces more than half its global smartphone supply there -may be forced to restructure their supply chains. Seoul is closely watching how other major players, including Japan and the European Union, approach negotiations with Washington, all while seeking to reduce its trade surplus with the U.S. without undermining the foundations of its export-driven economy. In response to what officials are calling a "tariff shock," the South Korean government is preparing a financial support package worth nearly 3 trillion Korean won -or over 2 billion U.S. dollars -aimed at stabilizing key industries hit hardest, including automobiles and auto parts. The package, expected to roll out within the next week, will be delivered through state-run policy finance institutions such as the Korea Development Bank. Automobiles remain South Korea's top export to the United States, with nearly half of the country's total auto shipments headed there last year. Auto parts exports to the U.S. also hit a record high, underscoring the critical role of these sectors in bilateral trade. Amid these developments, domestic banks are rapidly tightening credit risk controls and reassessing their loan portfolios. In a notable example, one bank recently reclassified the secondary battery industry as high-risk -a move that signals a broader shift in risk assessment across the financial sector. With U.S. tariff policies continuing to evolve and uncertainty deepening, South Korean authorities and financial institutions are bracing for prolonged economic turbulence. Moon Hye-ryeon, Arirang News.
Seoul weighs tariff strategy, considers relief for auto sector
2025/04/06 12:00
Korea is reviewing options to tackle U.S. President Trump's major tariffs on America's trading partners. Separately, it's preparing a financial support package worth 2-billion dollars to help industries hit by the trade war. Our Moon Hye-ryeon has the details. As the United States imposes a 25 percent reciprocal tariff on South Korean goods, Seoul is cautiously preparing its negotiation strategy -including plans to dispatch its top trade official to Washington. The government is reportedly analyzing broader trade dynamics, as the U.S. appears to have based the new tariffs on trade surpluses rather than a detailed policy review. With countries like Vietnam also facing steep duties, companies such as Samsung -which produces more than half its global smartphone supply there -may be forced to restructure their supply chains. Seoul is closely watching how other major players, including Japan and the European Union, approach negotiations with Washington, all while seeking to reduce its trade surplus with the U.S. without undermining the foundations of its export-driven economy. In response to what officials are calling a "tariff shock," the South Korean government is preparing a financial support package worth nearly 3 trillion Korean won -or over 2 billion U.S. dollars -aimed at stabilizing key industries hit hardest, including automobiles and auto parts. The package, expected to roll out within the next week, will be delivered through state-run policy finance institutions such as the Korea Development Bank. Automobiles remain South Korea's top export to the United States, with nearly half of the country's total auto shipments headed there last year. Auto parts exports to the U.S. also hit a record high, underscoring the critical role of these sectors in bilateral trade. Amid these developments, domestic banks are rapidly tightening credit risk controls and reassessing their loan portfolios. In a notable example, one bank recently reclassified the secondary battery industry as high-risk -a move that signals a broader shift in risk assessment across the financial sector. With U.S. tariff policies continuing to evolve and uncertainty deepening, South Korean authorities and financial institutions are bracing for prolonged economic turbulence. Moon Hye-ryeon, Arirang News.
China hits back with 34% tariff on U.S.; stocks plunge, global markets in turmoil
2025/04/05 12:00
Trade tensions between the U.S. and China have reached a new peak, with both nations taking drastic steps that threaten to reshape global commerce. On Friday, China announced that it will impose a 34% tariff on all U.S. imports, starting next week. Stock markets tumbled following the announcement. Our Kim Jung-sil reports. In a dramatic escalation of the ongoing trade dispute, China has retaliated against the U.S. with a hefty 34% tariff on all U.S. imports. "The Customs Tariff Commission of the State Council announced on Friday that China will impose an additional 34% tariffs on all products imported from the United States starting from (12:01) April 10th." The move comes just days after U.S. President Donald Trump unveiled 54% tariffs on all Chinese imports. The new tariffs have sent shockwaves through global markets. In the U.S., all three major stock indexes plummeted, with the Dow Jones falling by 5.5% and the S&P 500 dropping nearly 6%, capping the worst week since 2020. Despite increased demand for safe-haven assets, gold prices also fell nearly 3%. Analysts suggest that the recent market crashes have left investors with liquidity shortages, prompting them to liquidate gold holdings to cover margin calls. "It's an economic Armageddon that was unleashed by Trump. And the tariff war has begun, and we believe this could set tech stocks and the tech industry in the U.S. back potentially a decade." Analysts warn that the economic consequences of the trade war could be severe, particularly for U.S. tech companies reliant on Asian supply chains. Professor Yang Jun-sok, an economics expert at The Catholic University of Korea, says China is directly challenging President Trump, arguing that once tariffs exceed a certain level, China faces little risk, but it has rattled American investors. "It'll be a big question whether the European Union and Canada will join China in retaliation. If they do, then President Trump may have no choice but to back down from his high tariff policy." As stock markets continue to tumble, all eyes are on whether China's latest move will prompt President Trump to reconsider his aggressive tariff policies. Kim Jung-sil, Arirang News.