News

Korean won strengthens against U.S. dollar; KOSPI falls on chip tariff fears

2025/04/04 20:00

The local currency strengthened against the greenback on Friday, driven by the dollar's weakness and eased political uncertainties. Moon Ji-young explains. The Korean won strengthened on Friday, trading against the U.S. dollar at 1-thousand-4-hundred-34-point-1 won at 3:30 PM, down 32-point-9 won from the previous day. The local currency saw a brief spike against the greenback, trading at one-thousand-4-hundred-30-point 2 per U.S. dollar at one point as the Constitutional Court was delivering its ruling to oust President Yoon Suk Yeol. "This depreciation of the U.S. dollar can be primarily attributed to the concerns over an economic slowdown in the U.S. in addition to the strengthening of the Korean won, driven by eased political uncertainties" Meanwhile, the benchmark KOSPI lost 21-point-28 points or point-86 percent to close at 2645.42. As Trump announced that tariffs on chips will start "very soon" on April 3rd local time, semiconductors led the decline, with market bellwether Samsung Electronics falling 2-point-6 percent and its rival SK Hynix tumbling nearly 6-point-4 percent. On the same day, the so-called F4 gathering of top financial officials, including Finance Minister Choi Sang-mok, convened to assess market conditions following the Court's ruling. The officials concluded that there were no significant changes after the ruling and reaffirmed their commitment to addressing the increasing pressures on domestic companies and the economy resulting from U.S. tariffs. They highlighted the necessity of passing a supplementary budget of 10 trillion won, roughly 6.9 billion U.S. dollars, to the National Assembly. Moon Ji-young, Arirang News.

White House fixes S. Korea's reciprocal tariff rate at 25%

2025/04/04 20:00

Confusion emerged over the Trump administration's new tariffs set for South Korea, but now, the White House officially says the tax rate is set at 25-percent, not 26, as previously notified. Meanwhile, Wall Street saw its worst drop since the pandemic five years ago following the tariff announcement. Lee Soo-jin explains. The reciprocal tariff imposition on South Korea has been finalized at 25 percent. On Thursday local time, the annex to the executive order on the White House website was amended to 25 percent, from 26 percent. The amendment was made without a clear explanation. This comes after a panel presented by U.S. President Donald Trump at a Rose Garden event the day before listed the reciprocal tariff on South Korea as 25 percent, while the annex of the executive order stated it as 26 percent, causing confusion about the discrepancy. When the White House initially did not indicate any intention to make a correction, the South Korean government demanded one, arguing that under Trump's formula, Korea's tariff rate should be 25 percent, and not 26 percent. And this one percent difference is significant as it amounts to roughly 1-point-3 billion U.S. dollars. Meanwhile,.. the impact of the announcement of Trump's larger-than-expected tariffs was immediate in stock markets, with Wall Street on Thursday seeing its worst day since the COVID-19 pandemic in 2020. The S&P 500 plunged nearly 5 percent, and the Dow Jones, 4 percent, both suffering the biggest one-day drop since June 2020. And the tech-heavy Nasdaq, dropped nearly 6 percent, the largest decline since March 2020. Trump, however, in response to a question about the severe impact of his tariffs, dismissed concerns. "The markets are going to boom, the stock is going to boom, the country is going to boom, and the rest of the world wants to see is there any way they can make a deal." But market analysts are less optimistic. "It is nerve-wracking to watch markets go down by a couple of percent in a day, but my career spans back to the 1987 crash . So this one still ranks up there and is very concerning. Any time markets are down with this amount of vehemence, if you will, especially on unexpected news, it's worrisome." Analysts say the sharp decline reflects investor concerns that U.S. companies reliant on global supply chains could soon be subject to retaliatory measures from trading partners. In the meantime, Trump says he is open to negotiations. Lee Soo-jin, Arirang News.

[Econ & Biz] Tariff shock: S. Korea grapples with steep reciprocal tariffs and auto export levies

2025/04/03 20:00

For a closer look on what these new major U.S. tariffs mean for the local economy, our trade correspondent Moon Hye-ryeon joins us in the studio. Hye-ryeon, some 60 countries were included on the list. Give us some context as to how high the levies are for South Korea? Sure. In addition to the baseline tariff of 10 percent that applies to all countries, South Korea is being levied an extra 16 percent as one of Washington's listed "worst offenders" on trade – bringing the total to 26 percent. To put this into context, this is notably higher than what many analysts had anticipated, especially given the existing Free Trade Agreement between the two countries. The rate surpasses the tariffs applied to other U.S. allies, such as the European Union and Japan, making it the highest among Washington's FTA partners. Experts say that this comes as a result of a high trade deficit and South Korea's tariffs on U.S. agricultural goods. "The U.S. appears to be focusing on the agricultural sector because it has a high volume of agricultural exports. Also, South Korea's trade surplus with the U.S. was originally below 50 to 60 billion dollars. If a trade deficit with a specific country rapidly increases over a few years, U.S. federal law requires an investigation, and appropriate measures can be taken in response." Other than the reciprocal tariffs that will be applied within the next few days, 25 percent tariffs on all vehicles shipped to the U.S. took effect starting at midnight in Washington and 1 PM in Seoul. This auto tariff rate is consistent across all countries, so South Korea is not being singled out in this sector. What has been the response from the authorities thus far? Following the announcement, a series of high-level meetings were convened between government officials and industry leaders. Prime Minister Han Duck-soo was the first to respond, calling an emergency meeting to conduct a thorough analysis of the newly announced tariffs and their potential impact. He also emphasized the importance of negotiations with Washington to minimize economic damage. The government then held a macroeconomic policy meeting, presided over by Finance Minister Choi Sang-mok, to assess market reactions and pledge all necessary measures to stabilize any excessive volatility as the benchmark KOSPI began trading more than 2.7 percent down from the previous session. Targeted support for industries most vulnerable to the tariffs was also outlined. "We will sequentially announce detailed support measures to counter tariffs, including support for industries expected to be affected such as automobiles, and the expansion of refund guarantees for shipbuilding." Meanwhile, industry leaders, government officials, and economic organizations gathered for further discussions on the potential impact on South Korean businesses. With the presidential impeachment verdict set for tomorrow, concerns have emerged over the absence of strong leadership to spearhead negotiations, raising uncertainty about the government's ability to navigate the crisis effectively. Which industries could suffer the most? Although auto tariffs are spared extra reciprocal tariffs, with around half of South Korea's exports to the U.S. reliant on auto shipments, these levies are expected to hit hard. Here's what an expert said. "Half of all cars exported abroad are shipped to the U.S., meaning Hyundai and Kia will take the biggest hit. In particular, Korea's GM branch, which sends roughly 85 percent of its vehicles to the U.S., is likely to suffer a direct blow." And it's not just vehicles but levies on auto parts, too, that could lead to higher costs for domestic automakers. With the Trump administration also preparing to implement levies on other goods including semiconductors, this could also be a cause for concern. "Many big tech companies, including Apple, as well as South Korean firms, have extensive production facilities in China, Vietnam, India, Malaysia, and Indonesia. Because of this, shifting supply chains in the short term is not easy. If the overall scale of ICT product exports to the U.S. shrinks even slightly, South Korea's semiconductor industry may also see a decline in exports." With pressure mounting on the South Korean government to strike a deal to secure a deal or risk a further slowdown in its manufacturing sector, a shift in strategy from pledging investments in the U.S. is needed. Alright, thank you for your report, Hye-ryeon. Thanks for having me.

S. Korean stocks show volatility amid U.S. tariff pressure, Choi vows immediate stabilization measures

2025/04/03 17:00

The local stock market ended DOWN in response to the Trump administration's reciprocal tariffs. The KOSPI surrendered 0-point-7 percent to close its trade on this Thursday at 2-thousand-4-hundred-86-point-7. The index plunged 2-point-7 percent at the start of its session today to open at around 2-thousand-4-hundred-37 points but it regained some ground in the course of the day. Separately Finance Minister Choi Sang-mok has said relevant authorities are closely monitoring the stock market and are poised to intervene in the event of excessive fluctuations.

S. Korea's consumer prices in March rise by 2.1% year-on-year

2025/04/02 20:00

Inflation at home remained within the two-percent range in March for the third month in a row. Park Jun-han covers the latest finding and more. South Korea's consumer price data shows steady inflation in the low 2-percent range over the past three months. In March, consumer prices increased by 2-point-1 percent compared to March the previous year. The inflation over the past three months is slightly higher than September to December last year when inflation was in the 1-percent range. The price of cabbages went up by 49-point-7 percent and radishes went up by 86-point-4 percent. The price of processed foods rose by 3-point-6 percent. That's the biggest jump in fifteen months, pushing overall inflation up by point-three percentage points. Statistics Korea attributed the increase in processed food prices to three factors: a rise in raw material prices, the high foreign exchange rate, and rising labor and energy costs. Meanwhile, the cost of services also went up, with both public and personal services seeing price rises. The price of public services, which include things like transport and tuition fees, increased by 1-point-4 percent year-on-year. The increase was mainly due to the rise in private university tuition. The price of personal services is 3-point-1 percent higher than a year ago. The increase was due to increased demand in trips in March. Finance Minister Choi Sang-mok pledged at the Ministerial Meeting on Economic Affairs to use the government's full range of capabilities to stabilize perceived inflation. "In April and May, we will allocate an additional 30 billion Korean won to support agricultural product discounts, and we will supply more than a hundred tons of cabbages and radishes to the market every day to stabilize supply and demand. We will also lower the price burden of food ingredients through new quota tariffs on raw pork meat and 원재료 가격 상승, 높은 환율, 그리고 노동 및 에너지 비용 증가 등 세 가지 요인을 지적했습니다.processed egg products." The Bank of Korea on Wednesday said that the inflation rate is expected to remain stable around the target level of 2-percent. It also added that there is still a lot of uncertainty around the foreign exchange rate and oil price movements, as well as domestic demand. The central bank said it will keep a keen eye on future inflation levels. Park Jun-han, Arirang News.

Hyundai, Kia set record March auto sales in U.S. market

2025/04/02 17:00

Hyundai Motor and its affiliate Kia Motors set new records in sales for the month of March in the U.S. market. According to the latest company data the two carmakers combined sold some 1-hundred-70-thousand units last month UP about 13 percent on year. This is reportedly the highest-ever March sales and also marks the sixth straight month of growth. This latest performance is being linked to stellar sales of eco-friendly vehicles.

S. Korean gov't allocates US$ 273 mil. for areas affected by wildfires

2025/04/02 17:00

Finance Minister Choi Sang-mok has pledged tangible support for agricultural areas affected by the worst wildfires in the nation's history. Speaking at an economic ministerial meeting earlier on this Wednesday Choi added the support will seek to stabilize the supply and prices of agricultural products and assist farmers affected by the recent fires. At least four-hundred-billion Korean won or some 2-hundred-73 million U.S. dollars will be allocated for the restoration of equipment and facilities the purchase of livestock feed and emergency livelihood relief. Separately the death toll from last week's devastating fires has risen to 31 with another fatality reported today.

S. Korea's consumer prices in March rise by 2.1% year-on-year

2025/04/02 17:00

Inflation here in Korea in March remained within the two-percent range for the third month in a row. Park Jun-han covers the latest finding and more. South Korea's consumer price data shows steady inflation in the low 2-percent range over the past three months. In March, consumer prices increased by 2-point-1 percent compared to March the previous year. The inflation over the past three months is slightly higher than September to December last year when inflation was in the 1-percent range. The price of cabbages went up by 49-point-7 percent ( 1) and radishes went up by 86-point-4 percent ( 2). The price of processed foods rose by 3-point-6 percent ( ). That's the biggest jump in fifteen months, pushing overall inflation up by point-three percentage points. Statistics Korea attributed the increase in processed food prices to three factors: a rise in raw material prices, the high foreign exchange rate, and rising labor and energy costs. Meanwhile, the cost of services also went up, with both public and personal services seeing price rises. The price of public services, which include things like transport and tuition fees, increased by 1-point-4 percent year-on-year. The increase was mainly due to the rise in private university tuition. The price of personal services is 3-point-1 percent higher than a year ago. The increase was due to increased demand in trips in March. Finance Minister Choi Sang-mok pledged at the Ministerial Meeting on Economic Affairs to use the government's full range of capabilities to stabilize perceived inflation. "In April and May, we will allocate an additional 30 billion Korean won to support agricultural product discounts, and we will supply more than a hundred tons of cabbages and radishes to the market every day to stabilize supply and demand. We will also lower the price burden of food ingredients through new quota tariffs on raw pork meat and raw egg products." The Bank of Korea on Wednesday said that the inflation rate is expected to remain stable around the target level of 2-percent. It also added that there is still a lot of uncertainty around the foreign exchange rate and oil price movements, as well as domestic demand. The central bank said it will keep a keen eye on future inflation levels. Park Jun-han, Arirang News.

S. Korea's consumer prices in March rise by 2.1% year-on-year

2025/04/02 10:00

Consumer prices in South Korea in March saw an increase in the two-percent range for the third consecutive month. According to inflation data from Statistics Korea, consumer prices in March increased by 2-point-1 percent year-on-year. Notably, marine products went up by four-point-nine percent and processed foods went up by three-point-six percent. Recent consumer price data shows a steady rise in the low two-percent range over the past three months, slightly higher than September to December last year when inflation was in the one-percent range.

S. Korea's exports rise for second straight month in March on strong chip demand

2025/04/01 20:00

Korea's exports expanded for the second month in a row in March gaining over three-percent from a year ago backed by shipments of semiconductors. Lee Soo-jin has details. South Korea's exports grew for the second consecutive month in March amid mounting concerns over U.S. President Donald Trump's impending tariffs announcement. Data from the Ministry of Trade, Industry and Energy on Tuesday shows that the value of exports last month came to 58-point-2 billion U.S. dollars, up 3-point-1 percent compared to the previous year. Korea's exports declined in January ,.. ending a 15-month streak of on-year growth, but rebounded in February and showed an upward trend in March. This comes as outbound shipments of semiconductors, the country's top export item, rose nearly 12 percent on-year, driven by strong demand for high-value memory semiconductors such as HBM and DDR5. Chip exports rebounded in March after showing negative growth in February and fell below the 10 billion dollar mark, after surpassing it for nine consecutive months. Shipments of automobiles,.. another key export item, also increased for the second consecutive month as growth in shipments of hybrid, gasoline, and diesel vehicles continued from the previous month. And while exports of steel, fell, an official from the government said that the drop was not due to the Trump administration's 25 percent aluminum and steel tariffs imposed last month. "Export volume has remained largely unchanged. Typically, there is a two to three-month lag between signing a steel contract and the actual exporting, meaning the impact of tariffs on steel is yet to fully take effect." Outbound shipments of aluminum, which were also subject to the 25 percent tariff, saw a more than 20 percent increase last month. But with additional duties, including reciprocal tariffs and the 25 percent auto tariffs set to take effect this week, likely to bring greater trade uncertainties, the official said the government will provide export vouchers and expert consultation services for companies. The country's imports rose 2-point-3 percent, leading to a second straight month of trade surplus. Lee Soo-jin, Arirang News.

Impeachment uncertainty shakes markets: What’s next for Korea’s economy?

2025/04/01 20:00

Welcome to Within The Frame, where we bring the most pressing issues across the globe into focus, I'm Kim Mok-yeon. As South Korea's political landscape remains mired in uncertainty following the December 3rd martial law crisis and the prolonged impeachment proceedings against President Yoon Suk Yeol, concerns are mounting over the potential economic fallout. From a volatile Korean won-U.S. dollar exchange rate and rising credit default swap premiums to downward revisions in GDP growth forecasts and rising food prices, the ripple effects are being felt across financial markets and consumer sectors alike. So, what exactly is driving the economic instability? How will the impeachment verdict impact the markets? For answers to this, we invite Yang Jun-sok, Professor of Economics at the Catholic University of Korea. Welcome. Also joining us online is Park Min-jung, Professor of Business Administration at Kumoh National Institute of Technology. Great to have you. (YANG) 1. Let's start with Prof. Yang. So the political turmoil triggered by the December 3rd martial law emergency has lasted for over three months, intensifying economic instability. Notably, the won-dollar exchange rate has surpassed the 1,470 mark again after more than 50 days AND maintained such a level for the second day. What are the reasons for this increase? (PARK) 2. Now the exchange rate is expected to fluctuate further depending on the impeachment verdict of President Yoon Suk Yeol, which is set for Friday. There is speculation that, along with the ripple effects of Trump's tariff imposition, the rate could break the 1,500 won mark. Professor Park, what is your outlook on this? (YANG) 3. Amid the prolonged impeachment situation, concerns are rising about a possible downgrade of the national credit rating. It is reported that the Credit Default Swap premium, which reflects national external credibility, is rebounding. Prof. Yang, what is the current situation? How could increasing credit risk impact the Korean economy? (PARK) 4. Alongside the rise in CDS premiums, overseas institutions are successively lowering their economic growth forecasts for Korea this year. Some even predict that the growth rate could fall to the 0% range. Prof. Park, what are the possible countermeasures to overcome declining economic growth? (YANG) 5. Shifting gears, the food and restaurant industries are continuously raising prices. This contrasts sharply with the same period last year when price hikes among food companies were rare. Prof. Yang, what are the reasons behind the rising food prices? (PARK) 6. As for the cause, some criticize that the political vacuum in Korea may have pushed companies to accelerate price hikes. What are your thoughts on this, Prof. Park? (YANG) 7. There are also analyses suggesting that the recent wildfires in the southeast may affect consumer prices to some extent. What is your take on this, Prof. Yang? What is the outlook for food price trends going forward? (PARK) 8. There are concerns that the inflation rates for processed food and dining-out prices may soon exceed 3%. What countermeasures are needed for effective inflation control, Prof. Park? (YANG) 9. Now, as part of efforts to ease the burden on the public, the government officially announced a supplementary budget of about 10 trillion won. This is the first time the budget authorities have formally declared such a move. What led to this decision, Prof. Yang? Also, why is it being called an "essential" supplementary budget?

S. Korea's exports rise for second straight month in March on strong chip demand

2025/04/01 17:00

Korea's exports expanded for the second month in a row in March gaining over three-percent on year backed by shipments of semiconductors. Our correspondent Lee Soo-jin has details. South Korea's exports grew for the second consecutive month in March amid mounting concerns over U.S. President Donald Trump's impending tariffs announcement. Data from the Ministry of Trade, Industry and Energy on Tuesday shows that the value of exports last month came to 58-point-2 billion U.S. dollars, up 3-point-1 percent compared to the previous year. Korea's exports declined in January ,.. ending a 15-month streak of on-year growth, but rebounded in February and showed an upward trend in March. This comes as outbound shipments of semiconductors, the country's top export item, rose nearly 12 percent on-year, driven by strong demand for high-value memory semiconductors such as HBM and DDR5. Chip exports rebounded in March after showing negative growth in February and fell below the 10 billion dollar mark, after surpassing it for nine consecutive months. Shipments of automobiles,.. another key export item, also increased for the second consecutive month as growth in shipments of hybrid, gasoline, and diesel vehicles continued from the previous month. And while exports of steel, fell, an official from the government said that the drop was not due to the Trump administration's 25 percent aluminum and steel tariffs imposed last month. "Export volume has remained largely unchanged. Typically, there is a two to three-month lag between signing a steel contract and the actual exporting, meaning the impact of tariffs on steel is yet to fully take effect." Outbound shipments of aluminum, which were also subject to the 25 percent tariff, saw a more than 20 percent increase last month. But with additional duties, including reciprocal tariffs and the 25 percent auto tariffs set to take effect this week, likely to bring greater trade uncertainties, the official said the government will provide export vouchers and expert consultation services for companies. The country's imports rose 2-point-3 percent, leading to a second straight month of trade surplus. Lee Soo-jin, Arirang News.

Gold price surpasses US$ 3,100 for new record high on Mon.

2025/04/01 10:00

The price of gold has soared to a new record high ahead of the announcement of reciprocal tariffs by U.S. President Donald Trump's administration this week. The price of spot gold peaked at $3,128.06 on Monday, continuing a surge that has seen it gain over 18% since the start of the year. Experts say the rise is due to heightened demand as investors seek safe-haven assets amid economic uncertainty and escalating global trade tensions.

All listed stocks in S. Korea available for short selling, bringing short-term volatility

2025/03/31 20:00

Amid unstable global stock markets as well as the resumption of short-selling at home, local stocks were sharply down today. Park Jun-han has the details. Starting Monday, South Korea resumed short selling on its stock market after a 17-month suspension. And for the first time in five years, the country is allowing short selling for all listed stocks. With investors now able to borrow and sell stocks before buying them back later, the market is seeing increased volatility, which has intensified amid falling global stock prices. The benchmark KOSPI, at around 1:30 PM, briefly dropped below 2,480 points. At the market's close on Monday, 3:30 PM local time, the KOSPI closed at around 2,481, down 3 percent from last Friday's market close. On the same day, the value of the U.S. dollar against the Korean won climbed to 1,472.9 won per dollar, up 6.4 won from last Friday's close. This is the highest since March 2009. Short selling involves investors borrowing stocks, selling them at the market price, and later repurchasing them, ideally at a lower price, to return to the lender. "That's what you have in a normal market, in any international market. If it goes too high, you have short sellers to stop it from going too high." To create a safer and fairer stock trading environment and to facilitate the return of short selling, the Korea Exchange is implementing measures such as strengthened penalties for illegal short selling and increased monitoring of transaction activities. Additionally, those who borrow stocks must repay them within 90 days, with an extension of up to a year. "Well, the large complaint that the individual investors had was that larger companies were engaged in naked short selling. That means short selling without borrowed stocks on hand. And then I believe they have now databases for short-selling transactions so that anybody can see that the transactions are done fairly rather than below the table sometimes." Amid short-term market volatility, industry experts emphasize the long-term necessity of short selling in Korea, as it is expected to attract more foreign capital inflow, enhance liquidity, and help investors manage risks. Park Jun-han, Arirang News.

S. Korea, China and Japan reaffirm trade cooperation ahead of U.S. reciprocal tariffs

2025/03/31 17:00

Here in Seoul. Trade Minister Ahn Duk-geun hosted his Japanese and Chinese counterparts this past Sunday for the first trilateral trade talks in over five years aimed at advancing regional partnership amid the threat of U.S. tariffs. Our correspondent Moon Hye-ryeon has more. The trade ministers of South Korea, China, and Japan met in Seoul for the first time in nearly six years and underscored the need for stronger economic ties and pledged to expand trade partnerships amid growing global uncertainties. At the Trilateral Economic and Trade Ministers' Meeting on Sunday, South Korea's Trade Minister Ahn Duk-geun, China's Commerce Minister Wang Wentao, and Japan's Minister of Economy, Trade and Industry Muto Yoji emphasized the importance of a stable global trade system and vowed to strengthen cooperation in key economic sectors. Their discussions came just days before the U.S. government's scheduled announcement of new reciprocal tariffs as the three nations navigate rising protectionist pressures. The meeting was seen as a strategic move to coordinate a response with all three nations facing similar concerns as major U.S. trade deficit partners and potential targets of tariffs. And, as a result, the ministers aligned on the broader goal of preserving a stable international trade system. During the talks, the ministers reaffirmed their commitment to multilateral trade frameworks, supporting reforms at the World Trade Organization and expanding the Regional Comprehensive Economic Partnership to include new members. They also pledged to accelerate negotiations for a high-level trilateral Free Trade Agreement. "It is necessary to strengthen the implementation of RCEP, in which all three countries have participated, and to create a framework for expanding trade cooperation among the three countries through Korea-China-Japan FTA negotiations." While South Korea and China currently have an FTA in place, discussions on a three-way agreement have stalled due to differing economic conditions and national priorities. Beyond trade agreements, the ministers addressed broader economic concerns, committing to stabilizing supply chains and expanding cooperation in green and digital industries. Moon Hye-ryeon, Arirang News.

All listed stocks in S. Korea available for short selling, bringing short-term volatility

2025/03/31 17:00

A short-selling ban that went into effect in November 2023 has been lifted with tougher measures in place to crack down on illegal transactions. Park Jun-han covers this lifting and the stock market's response on this Monday. Starting Monday, South Korea resumed short selling on its stock market after a 17-month suspension. And for the first time in five years, the country is allowing short selling for all listed stocks. With investors now able to borrow and sell stocks before buying them back later, the market is seeing increased volatility, which has intensified amid falling global stock prices. The benchmark KOSPI, at around 1:30 PM, briefly dropped below 2,480 points, declining over 3 percentage points compared to last Friday's market close of 2,557.98. At the market's close on Monday, 3:30 PM local time, the KOSPI closed at 2,481.12, down 76.86 points, or 3.0%, from last Friday's Market close. Short selling involves investors borrowing stocks, selling them at the market price, and later repurchasing them, ideally at a lower price, to return to the lender. "That's what you have in a normal market, in any international market. If it goes too high, you have short sellers to stop it from going too high." To create a safer and fairer stock trading environment and to facilitate the return of short selling, the Korea Exchange is implementing measures such as strengthened penalties for illegal short selling and increased monitoring of transaction activities. Additionally, those who borrow stocks must repay them within 90 days, with an extension of up to a year. "Well, the large complaint that the individual investors had was that larger companies were engaged in naked short selling. That means short selling without borrowed stocks on hand. And then I believe they have now databases for short-selling transactions so that anybody can see that the transactions are done fairly rather than below the table sometimes." Amid short-term market volatility, industry experts emphasize the long-term necessity of short selling in Korea, as it is expected to attract more foreign capital inflow, enhance liquidity, and help investors manage risks. Park Jun-han, Arirang News.

S. Korea fully lifts short-selling ban on Monday

2025/03/31 10:00

South Korea fully lifted its ban on short-selling on Monday. Short-selling is now allowed for all listed firms for the first time since March 2020, when the ban was introduced due to the market crash caused by the COVID-19 pandemic. The ban was partially lifted in May 2021, but temporarily reimposed in November 2023 after a series of naked short-selling violations by global investment banks were discovered. Ahead of the resumption of short-selling, the Korea Exchange has set a new system to detect any illegal practices.

S. Korea’s economy sees 'triple plus' with gains in production, consumption, investment

2025/03/31 10:00

South Korea's economy rebounded in February, with production, consumption, and investment all increasing compared to the previous month. According to Statistics Korea on Monday, the overall industrial output saw an increase of point-6 percent compared to the month before, largely due to gains in the service and service and mining industries. The construction industry returned to an upward trend for the first time in seven months. Retail consumption was up 1.5%, and facility investment jumped by a huge 18.7%. An official from Statistics Korea attributed the overall increase to a base effect resulting from a decline in the previous month, caused by fewer working days due to a long Lunar New Year holiday.

Despite Hyundai's major U.S. investment plan, Trump imposes 25% tariffs on imported cars

2025/03/27 20:30

Welcome to Within The Frame, where we bring the most pressing issues across the globe into focus, I'm Kim Mok-yeon. South Korea's Hyundai Motor Group on Monday announced a sweeping 21 billion dollar investment in the United States, including a new 5 billion dollar steel plant in Louisiana, through 2028. The plan includes investment for the automotive sector, the steel industry, and for future industries and the energy sector. "Hyundai Motors entered the U.S. in 1986. Since then, we have invested over 20 billion dollars and now support more than 570,000 American jobs across all 50 nation states. Today, I'm pleased to announce an additional 21 billion dollars in a new investment over the next four years. Our largest U.S. invest ever.” The announcement comes as U.S. President Donald Trump signals potential 25 percent tariffs on imported cars starting April 2nd and broadens trade pressure on countries with large U.S. trade surpluses. Calling Hyundai a truly great company, the U.S. President expressed excitement. “Hyundai will be producing steel in America and making its cars in America. And as a result, they'll not have to pay any tariffs. You know, there are no tariffs If you make your product in America.” Monday’s announcement made Hyundai the first South Korean company to unveil a major investment plan amid Trump’s tariff threats — raising cautious hopes it could help ease U.S. trade pressure on Seoul. For a deeper discussion on the latest developments, we invite Song Soo-young, Professor of Business and Economics at Chung-Ang University. Welcome. Also joining us from Texas is Hwagyun Kim, Professor of Banking and Finance at Texas A&M University's Mays Business School. Great to have you. 1. (Song) So Prof. Song, Hyundai Motors announced a massive 21 billion dollar-investment in major sectors including automobiles, parts, and steel throughout the next three years. What is the significance of Hyundai’s large-scale investment? And why did Chairman Chung Eui-sun specifically highlight steel plant construction as a core aspect of the investment? 2. (Kim) Regarding Chairman Chung’s investment announcement, President Trump emphasized that it “proves the effectiveness of the tariff policy.” What has been the local response? 3. (Song) Hyundai’s investment is seen as a bold move to directly counter the Trump administration’s tariff pressure. What lessons does this case offer to domestic companies and the government in terms of resolving tariff-related issues? 4. (Kim) However, Hyundai Motor has only avoided the tariff pressure for its vehicles produced locally in the U.S. Since President Trump has announced that 25% tariffs will be imposed on all imported cars starting April 2nd, what kind of countermeasures should be considered in response? 5. (Song) Following Hyundai, will major Korean companies like Samsung Electronics and SK hynix also accelerate investments in the U.S.? Given the uncertainty around receiving subsidies under the Biden administration’s investment terms, further investment might be burdensome. What is your outlook? 6. (Kim) The Trump administration has declared that reciprocal tariffs will be imposed starting April 2nd. Is there a possibility that Korea is included among the so-called “Dirty 15” countries targeted? And how would such tariffs be implemented? 7. (Song) On the other hand, after Chung’s announcement, President Trump stated that “not all new tariffs will be announced on April 2nd” and that “some countries may receive exemptions.” This is a shift from his previous stance that “there will be no tariff exemptions.” Can this be interpreted as a sign of flexibility in his tariff approach? 8. (Kim) Meanwhile, President Trump has encouraged Korea’s participation in the Alaska LNG (liquefied natural gas) project. In relation to this, Alaska Governor Mike Dunleavy visited Korea for discussions. Could Korea’s participation in the Alaska project become a bargaining chip to alleviate tariff pressure? What should the Korean government consider before making a decision? 9. (Song) With the Trump administration’s reciprocal tariff announcement just a week away, newly reinstated Prime Minister Han Duck-soo declared that he would dedicate efforts to safeguarding national interests amid this trade conflict. From Korea’s perspective, what other cards could be offered to the U.S. to avoid or reduce reciprocal tariffs?

S. Korea unveils trade competitiveness and AI investment as 2026 budget priorities

2025/03/25 20:00

South Korea has outlined its priorities for next year's budget, emphasizing industrial and trade competitiveness in response to U.S. trade barriers. The Ministry of Economy and Finance unveiled on Tuesday its 2026 spending guidelines, projecting a four-percent increase to a little over 704-trillion Korean won, just under 480-billion U.S. dollars. Other key priorities include expanding investments in AI and semiconductors, implementing fiscal reforms, and supporting recovery in struggling sectors like construction.