News

April consumer prices up 2.1% y/y; fourth straight month in 2% range

2025/05/02 20:00

Local consumer prices continued to hover on the two-percent range in April for the fourth month in a row, with the cost of processed foods and of dining out remaining relatively high. Park Jun-han covers the findings. Inflation in South Korea persists despite low oil prices, spurred by high food and dining out costs. According to data from Statistics Korea on Friday, South Korea's inflation in April stood at 2-point-1 percent year-on-year. Consumer prices have been showing increases in the two-percent range over the past four months. High exchange rates due to the weakening of the Korean won and supply constraints pushed up the prices of processed foods and the cost of dining out. Compared to April last year, prices of processed foods went up by 4-point-1 percent. This is the highest level of increase in 16 months. In the same period, the cost of dining out went up by 3-point-2 percent. This is the highest level of increase in 13 months. Declining global oil prices eased inflationary pressure, as prices of petroleum products fell 1-point-7 percent, offsetting earlier gains. An expert from Statistics Korea pointed to the impact of the drop in global oil prices from around 89 U.S. dollars per barrel in April last year to around 68 dollars per barrel this April as a reason why further increases in consumer prices did not occur. "The fluctuations in consumer prices were due to a downward shift in petroleum products due to a decline in global oil prices." While the rise in the exchange rate contributed to April's inflation, and falling global oil prices limited further increases in consumer prices, this data alone does not indicate a long-term economic trend. "Although it used to go up, the exchange rate is falling a lot at the moment, so I think the exchange rate problem will go away sooner or later. About the global oil price issue, oil prices have also dropped a lot recently, but they might go up again, so I don't think the inflation issue is stabilized yet." Meanwhile, the prices of fresh produce fell by 1-point-9 percent, marking the largest drop since March 2022. Despite global uncertainties, an expert from Statistics Korea expects the country's inflation level to remain around 2 percent in the near future. Park Jun-han, Arirang News.

April consumer prices up 2.1% y/y; fourth straight month in 2% range

2025/05/02 17:00

Consumer prices continue to hover on the two-percent range here in Korea for the fourth month in a row. Park Jun-han covers the findings for this past April. Inflation in South Korea persists despite low oil prices, spurred by high food and dining out costs. According to data from Statistics Korea on Friday, South Korea's inflation in April stood at 2-point-1 percent year-on-year. Consumer prices have been showing increases in the two-percent range over the past four months. High exchange rates due to the weakening of the Korean won and supply constraints pushed up the prices of processed foods and the cost of dining out. Compared to April last year, prices of processed foods went up by 4-point-1 percent. This is the highest level of increase in 16 months. In the same period, the cost of dining out went up by 3-point-2 percent. This is the highest level of increase in 13 months. Declining global oil prices eased inflationary pressure, as prices of petroleum products fell 1-point-7 percent, offsetting earlier gains. An expert from Statistics Korea pointed to the impact of the drop in global oil prices from around 89 U.S. dollars per barrel in April last year to around 68 dollars per barrel this April as a reason why further increases in consumer prices did not occur. "The fluctuations in consumer prices were due to a downward shift in petroleum products due to a decline in global oil prices." While the rise in the exchange rate contributed to April's inflation, and falling global oil prices limited further increases in consumer prices, this data alone does not indicate a long-term economic trend. "Although it used to go up, the exchange rate is falling a lot at the moment, so I think the exchange rate problem will go away sooner or later. About the global oil price issue, oil prices have also dropped a lot recently, but they might go up again, so I don't think the inflation issue is stabilized yet." Meanwhile, the prices of fresh produce fell by 1-point-9 percent, marking the largest drop since March 2022. Despite global uncertainties, an expert from Statistics Korea expects the country's inflation level to remain around 2 percent in the near future. Park Jun-han, Arirang News.

April consumer prices up 2.1% y/y, fourth straight month in 2% range

2025/05/02 10:00

Consumer prices here have been showing an increase in the two-percent range over the past four months. According to data from Statistics Korea on Friday, consumer prices in April increased 2.1 percent year-on-year. The depreciation of the Korean won triggered price increases in processed foods and the cost of dining out. Notably, prices of processed foods rose by 4.1 percent year-on-year, and prices of dining out went up by 3.2 percent. In the meantime, the prices of fresh produce fell by 1.9 percent, marking the largest drop since March 2022.

S. Korea saw third consecutive month of export growth in April despite U.S. tariffs

2025/05/01 20:00

Korea's exports stayed in the black in April, rising for the third month in a row. Amid widespread concerns over U.S. tariffs, however, its shipments to the U.S were down almost 7-percent. Moon Ji-young covers this latest finding. South Korea's exports grew for the third consecutive month in April, despite the impact of tariffs imposed by the U.S., although outbound shipments to the U.S. saw a drop. According to the Ministry of Trade, Industry and Energy on Thursday, the value of exports last month amounted to 58-point-2 billion U.S. dollars, up 3-point-7 percent compared to the previous year. This marked the highest-ever for any April. This growth comes as outbound shipments of semiconductors, the country's top export engine, surged by a whopping 17 percent on-year to reach 11-point-7 billion dollars. This is the highest figure for any April, driven by strong demand for high-value memory semiconductors such as HBM and price increases of DDR4 DRAM chips. Exports of wireless communications equipment, including smartphones, and exports of biohealth products also expanded by a large margin. While exports of steel and ships both increased, shipments of automobiles, another key export item, dropped almost four percent year-on-year. This decline was largely due to weaker demand for internal combustion engine cars and electric vehicles. Regionally, exports to China rose nearly four percent on-year on strong demand for smartphones and semiconductors. Exports to the European Union also surged by more than 18 percent, setting a new monthly record of 6-point-7 billion dollars. In contrast, outbound shipments to the U.S. decreased almost 7 percent year on year, mainly due to a drop in automobile and machinery exports. "High U.S. tariffs appear to have affected South Korea's exports to the U.S., though the degree of impact differs by sector" In the midst of global trade uncertainties, some experts highlight the need to increase local production in response to strengthening trade barriers, especially on chips. "Rather than solely insisting on exports, pursuing a strategy of increasing local production, while potentially leading to short-term industrial hollowing-out, is a necessary long-term approach to advance our industrial structure." Meanwhile, the country's imports decreased by 2-point-7 percent, driven by a drop in energy imports. Moon Ji-young, Arirang News.

S. Korea confirmed as final contractor of Czech nuclear power project

2025/05/01 20:00

Korea has officially clinched a nuclear power plant project in the Czech Republic, setting another milestone 16 years after its last overseas nuclear plant project. The two sides are scheduled to sit down next week in Prague to seal the deal. Lee Soo-jin has more. South Korea has been officially confirmed as the contractor for the Czech Republic's new nuclear power plant project. Czech Prime Minister Petr Fiala said on Wednesday that a contract to build two reactors at the Dukovany power plant will be signed with the state-run Korea Hydro and Nuclear Power on May 7th. This comes as the Czech government announced that it will take an 80 percent stake in a subsidiary of its state-run energy company CEZ in charge of construction to finance the project, resolving one of the key hurdles to finalizing the nuclear power deal with Korea. CEZ had been pursuing alternative financing options after the government expanded the project from a single unit to two, estimated to cost more than 26 trillion won, or around 18 billion U.S. dollars. The project marks the first export of a nuclear power plant by a South Korean company since the Barakah nuclear plant in the United Arab Emirates in 2009. " Korean companies and Korean government have established strong reputation because they successfully moved into European market. We have struggled due to political tensions but now this market has recovered due to heavy demand for AI and also war between Ukraine and Russia." And if the Czech government later confirms plans to add two new units to the Temelin nuclear power plant, Korea is expected to be granted priority negotiation rights for that project too. A consortium led by the KHNP was selected in July 2024 as the preferred bidder to build the nuclear reactors, beating France's EDF and Westinghouse from the U.S., thanks to its competitive pricing and ability to follow tight construction timelines. While deal was supposed to finalized in March this year, it was delayed following complaints filed by EDF and Westinghouse against the decision. But the path to moving forward with the deal was cleared as Westinghouse and KHNP in January reached an agreement in January to settle their intellectual property dispute, and Czech authorities dismissed EDF appeals in April. The trial operation of the first nuclear unit is set for 2036, with the second to follow shortly after, aligning with the Czech Republic's goal of having 50 percent of its energy generated by nuclear power by 2050. South Korea's Ministry of Trade, Industry and Energy said that it "welcomes the announcement of the official contract signing date and that it will "make every effort to ensure a successful signing ceremony." The ceremony is expected to take place in Prague with representatives from KHNP and the CEZ subsidiary as well as government officials from both countries. Lee Soo-jin, Arirang News.

S. Korea confirmed as final contractor of Czech nuclear power project

2025/05/01 17:00

South Korea and the Czech Republic are scheduled to sit down next Wednesday in Prague to officially seal a nuclear power deal raising hopes here for greater inroads into the European market. Lee Soo-jin has details. South Korea has been officially confirmed as the contractor for the Czech Republic's new nuclear power plant project. Czech Prime Minister Petr Fiala said on Wednesday that a contract to build two reactors at the Dukovany power plant will be signed with the state-run Korea Hydro and Nuclear Power on May 7th. This comes as the Czech government announced that it will take an 80 percent stake in a subsidiary of its state-run energy company CEZ in charge of construction to finance the project, resolving one of the key hurdles to finalizing the nuclear power deal with Korea. CEZ had been pursuing alternative financing options after the government expanded the project from a single unit to two, estimated to cost more than 26 trillion won, or around 18 billion U.S. dollars. The project marks the first export of a nuclear power plant by a South Korean company since the Barakah nuclear plant in the United Arab Emirates in 2009. " Korean companies and Korean government have established strong reputation because they successfully moved into European market. We have struggled due to political tensions but now this market has recovered due to heavy demand for AI and also war between Ukraine and Russia." And if the Czech government later confirms plans to add two new units to the Temelin nuclear power plant, Korea is expected to be granted priority negotiation rights for that project too. A consortium led by the KHNP was selected in July 2024 as the preferred bidder to build the nuclear reactors, beating France's EDF and Westinghouse from the U.S., thanks to its competitive pricing and ability to follow tight construction timelines. While deal was supposed to finalized in March this year, it was delayed following complaints filed by EDF and Westinghouse against the decision. But the path to moving forward with the deal was cleared as Westinghouse and KHNP in January reached an agreement in January to settle their intellectual property dispute, and Czech authorities dismissed EDF appeals in April. The trial operation of the first nuclear unit is set for 2036, with the second to follow shortly after, aligning with the Czech Republic's goal of having 50 percent of its energy generated by nuclear power by 2050. South Korea's Ministry of Trade, Industry and Energy said that it "welcomes the announcement of the official contract signing date and that it will "make every effort to ensure a successful signing ceremony." The ceremony is expected to take place in Prague with representatives from KHNP and the CEZ subsidiary as well as government officials from both countries. Lee Soo-jin, Arirang News.

U.S. economy shrank 0.3% in Q1 amid Trump tariff impact

2025/05/01 17:00

The Trump administration's tariff policy has taken a tangible toll on America's first quarter economic activity. Findings show the country's GDP contracted by 0-point-3 percent on year and President Donald Trump insists that the former Biden administration is to blame. Lee Eun-jin reports. According to a Commerce Department report released on Wednesday, U.S. GDP in the first quarter of this year contracted 0-point-3 percent, marking the lowest GDP since the first quarter of 2022. The latest GDP reading is also lower than what was forecast by economists, which, according to FactSet, was 0-point-8 percent growth, still down from the 2-point-4 percent growth recorded in the fourth quarter of last year. The greatest cause for this sharp slowdown seems to have been President Trump's trade tariffs. Imports soared 41-point-3 percent in the first quarter, which threw the balance of trade off largely by the rush to bring in imports before the tariffs went up. But President Trump, during a Cabinet meeting at the White House, blamed former President Biden for the contraction, and even suggested that some responsibility for the next quarter would be Biden's as well, saying that such changes in the economy don't "just happen on a daily or an hourly basis." Trump also said in a Truth Social post, "quote," "This is Biden's Stock Market, not Trump's. I didn't take over until January 20th." Stock market volatility ensued following the release of the GDP report. But both the S&P and Dow marked their seventh straight day of gains, the S&P closing up 0-point-1-5 percent, while the Dow Jones Industrial Average added 0-point-3-5 percent. Meanwhile, Nasdaq Composite dropped 0-point-0-9 percent. The personal consumption expenditures price index, the indicator for measuring inflation, stayed unchanged in March after advancing 0-point-4 percent in February. In the 12 months through March, the PCE increased 2-point-3 percent, after rising 2-point-7 percent in February last year. Based on Wednesday's Commerce Department data, the economy is holding up for now, but uncertainty is rising as Trump's tariffs could upend the global order as well as the U.S. economy. The latest figures don't actually reflect President Trump's "Liberation Day" tariffs, as those were announced on April 2nd, just after the end of the first quarter. As some of those tariffs have already been paused or modified, analysts are expecting a more pronounced slowdown in growth later this year as consumers and businesses adjust. Meanwhile, President Trump wrote for everybody to be patient, saying the U.S. will soon "boom" after the tariffs start kicking in, and after the Biden "overhang" is gone. Economists say the tariffs could weaken economic growth and stoke inflation, but analysts still say one quarter of negative GDP growth is not itself a sign that a recession is underway. Lee Eunjin, Arirang News.

S. Korea saw third consecutive month of export growth in April despite U.S. tariffs

2025/05/01 17:00

And despite widespread concerns South Korea's exports managed to stay in the black in April rising for the third month in a row. Moon Ji-young covers this latest finding. South Korea's exports grew for the third consecutive month in April, despite the impact of tariffs imposed by the U.S., although outbound shipments to the U.S. saw a drop. According to the Ministry of Trade, Industry and Energy on Thursday, the value of exports last month amounted to 58-point-2 billion U.S. dollars, up 3-point-7 percent compared to the previous year. This marked the highest-ever for any April. This growth comes as outbound shipments of semiconductors, the country's top export engine, surged by a whopping 17 percent on-year to reach 11-point-7 billion dollars. This is the highest figure for any April, driven by strong demand for high-value memory semiconductors such as HBM and price increases of DDR4 DRAM chips. Exports of wireless communications equipment, including smartphones, and exports of biohealth products also expanded by a large margin. While exports of steel and ships both increased, shipments of automobiles, another key export item, dropped almost four percent year-on-year. This decline was largely due to weaker demand for internal combustion engine cars and electric vehicles. Regionally, exports to China rose nearly four percent on-year on strong demand for smartphones and semiconductors. Exports to the European Union also surged by more than 18 percent, setting a new monthly record of 6-point-7 billion dollars. In contrast, outbound shipments to the U.S. decreased almost 7 percent year on year, mainly due to a drop in automobile and machinery exports. "High U.S. tariffs appear to have affected South Korea's exports to the U.S., though the degree of impact differs by sector" In the midst of global trade uncertainties, some experts highlight the need to increase local production in response to strengthening trade barriers, especially on chips. "Rather than solely insisting on exports, pursuing a strategy of increasing local production, while potentially leading to short-term industrial hollowing-out, is a necessary long-term approach to advance our industrial structure." Meanwhile, the country's imports decreased by 2-point-7 percent, driven by a drop in energy imports. Moon Ji-young, Arirang News.

S. Korea's March industrial output rises while consumption and investment fall

2025/04/30 20:00

Industrial output maintained its growth momentum in March on the back of strong chip production but retail sales and facility investment lost ground. Shin Se-byuck covers the latest findings. South Korea's overall industrial output rose for a second straight month in March, led by a surge in semiconductor production,.. posting the biggest rise in 19 months. According to Statistics Korea on Wednesday, the country's industrial production index climbed point-9 percent on-month to 114-point-7. That follows a 1.0 percent gain in February, marking a continued rebound after a 1-point-6 percent drop in January. Manufacturing output jumped 2-point-9 percent from the month before. In particular, chip production spiked 13-point-3 percent, the largest increase since August 2023. Statistics Korea attributes this to sustained demand for advanced memory chips. "Semiconductor output has been climbing steadily since last year. In particular, demand for high-performance chips like HBM and DDR5 has reached record highs." Despite gains in production, the domestic economy remains sluggish. Construction output dropped 2-point-7 percent, while service-sector production, a key indicator of consumer activity, dipped 0-point-3 percent. Both consumption and investment declined, falling by point-3 percent and point-9 percent respectively from the previous month. Regarding consumption,.. by category,.. sales of nondurable and semi-durable goods rose, but durable goods like mobile phones and computers saw a sharp 8-point-6 percent drop. Statistics Korea attributed the sharp decrease in durable goods to a base effect from last month's surge in smartphone sales and early EV subsidies. For investment, facility investment fell point-9 percent as machinery investment declined, despite gains in transport equipment such as passenger cars. Pointing to weakening domestic demand as the main reason behind the divergence between industrial output and consumption, an expert said both short and long-term government efforts are needed to tackle the slowdown amid internal and external uncertainties. "The government is using a supplementary budget and potential rate cuts to support demand, but in the long run, we need new growth engines, as most industries, aside from semiconductors, are losing ground to China, hurting both exports and domestic demand." Shin Se-byuck, Arirang News.

[The Interview] Korean companies should "use American citizens as ambassadors" to navigate Trump tariff era: AMCHAM CEO James Kim

2025/04/30 17:00

The American Chamber of Commerce here in Korea believes raising awareness within the American public about Korea's business contributions to the U.S market may well serve the broader interests of the two governments. Our Lee Soo-jin explains. U.S. President Donald Trump's hard-line tariff agenda is fueling rapid, unpredictable shifts in the global trading landscape. South Korean companies are among those heavily impacted,. which is why they are actively exploring new strategies to adapt to the shifting environment. We sat down with the President and CEO of the American Chamber of Commerce in Seoul on Tuesday, who spoke highly of the contributions that Korean companies have made to the U.S. economy. "I think that Korean companies have done an amazing job. If you take a look at the past three years, Korean companies have made around 140 billion dollars worth of investment in America, making them the largest foreign direct investor in the United States. So if you are an American politician a governor or even the president of the United States I think you have to recognize the big contributions that Korean companies have made." But while Korean companies' contributions have been significant, more effort is needed to raise awareness of both these contributions and their broader strengths, particularly among the American public. "If you talked to an average American citizen who's living in Illinois, I don't think they know that Korean companies are the largest foreign direct investment. But I think that that's the mainstream America that the Korean government and Korean companies should really help educate the American public. And I would use the American citizens a lot more to be their their ambassador." " What are some specific strengths you think American citizens should know about Korean companies?" "Infrastructure is amazing. The people of Korea work very, very hard very, very efficiently. This is a great market to test out new products. The digital side of it is amazing, right? So those are the kind of aspects that people should know about Korea and why Korea is an important market for them to even consider investing in and doing business." And the more the U.S. and its people view Korea as an important market, the more investment and partnerships will follow, which will naturally give Korea a greater leverage against Trump's protectionist measures. Lee Soo-jin, Arirang News.

Samsung Electronics logs record quarterly revenue on strong smartphone, chip demand in Q1

2025/04/30 17:00

Samsung Electronics raked in its highest-ever quarterly revenue during the first quarter of this year. According to the company earlier on this Wednesday the revenue stands at slightly above 79 trillion won up some 10 percent on year. What's more Samsung's first-quarter operating profit also gained one-point-five percent on year to reach some 6-point-7 trillion won or some 4-point-7 billion U.S. dollars. These latest findings are being linked to strong performance in the smartphone and semiconductor units.

Samsung Electronics logs record quarterly revenue on strong smartphone, chip demand in Q1

2025/04/30 10:00

Samsung Electronics reported its highest-ever quarterly revenue in the first quarter of the year. The South Korean tech giant on Wednesday reported revenue of 7-point-9 trillion won, more than 55 billion U.S. dollars during the January to March period, up around 10 percent from the previous year. This surpasses the previous quarterly record set in the third quarter of 2024. And its operating profit came to around 4-point-7 billion U.S. dollars during the January to March period, a slight on-year rise of 1-point-2 percent. The rise in earnings was largely driven by strong performance in the smartphone unit, fueled by the popularity of the Galaxy S25, as well as solid results from the semiconductor unit.

S. Korea's March industrial output rises while consumption and investment fall

2025/04/30 10:00

South Korea's industrial output rose in March, while consumption and investment declined. According to data released by Statistics Korea on Wednesday, overall production increased point-9 percent on-month. The gain was due to higher output in chips and pharmaceuticals, offsetting a decline in services. Retail sales fell 0-point-3 percent due to lower demand for mobile devices, computers, and passenger cars. Facility investment also dipped point-9 percent, as spending on agriculture and construction-related machinery fell.

Stock

2025/04/29 20:00

2025. 4. 29. KOREAN STOCK MARKET KOSPI : 2,565.42 ▲16.56 +0.65% KOSDAQ : 726.46 ▲7.05 +0.98% KOSPI200 : 339.06 ▲1.98 +0.59% ASIAN STOCK MARKET NIKKEI225 : CLOSED HANG SENG : 22,008.11 ▲36.15 +0.16% SHANGHAI : 3,286.65 ▼1.76 -0.05% WALL STREET (April 28) DOW JONES : 40,227.59 ▲114.09 +0.28% NASDAQ : 17,366.13 ▼16.81 -0.10% S&P500 : 5,528.75 ▲3.54 +0.06% EXCHANGE RATE USD : 1,437.30 (-5.30) JPY : 1,009.59 (+5.52) CNY : 197.70 (+0.05) EUR : 1,637.80 (-2.00)

[The Interview] Korean companies should "use American citizens as ambassadors" to navigate Trump tariff era: AMCHAM CEO James Kim

2025/04/29 20:00

Korean businesses, like many others in the world, are facing challenges in today's turbulent trade environment. Our Lee Soo-jin spoke with the head of the American Chamber of Commerce in Korea on how they can navigate this uncertain landscape. U.S. President Donald Trump's hard-line tariff agenda is fueling rapid, unpredictable shifts in the global trading landscape. South Korean companies are among those heavily impacted, which is why they are actively exploring new strategies to adapt to the shifting environment. We sat down with the President and CEO of the American Chamber of Commerce in Seoul on Tuesday, who spoke highly of the contributions that Korean companies have made to the U.S. economy. "I think that Korean companies have done an amazing job. If you take a look at the past three years, Korean companies have made around 140 billion dollars worth of investment in America, making them the largest foreign direct investor in the United States. So if you are an American politician a governor or even the president of the United States I think you have to recognize the big contributions that Korean companies have made." But while Korean companies' contributions have been significant, more effort is needed to raise awareness of both these contributions and their broader strengths, particularly among the American public. "If you talked to an average American citizen who's living in Illinois, I don't think they know that Korean companies are the largest foreign direct investment. But I think that that's the mainstream America that the Korean government and Korean companies should really help educate the American public. And I would use the American citizens a lot more to be their their ambassador." " What are some specific strengths you think American citizens should know about Korean companies?" "Infrastructure is amazing. The people of Korea work very, very hard very, very efficiently. This is a great market to test out new products. The digital side of it is amazing, right? So those are the kind of aspects that people should know about Korea and why Korea is an important market for them to even consider investing in and doing business." And the more the U.S. and its people view Korea as an important market, the more investment and partnerships will follow, which will naturally give Korea a greater leverage against Trump's protectionist measures. Lee Soo-jin, Arirang News.

Seoul set to raise base subway fare to 1,550 won from 1,400 won

2025/04/29 17:00

Starting in late June the base subway fare within the Seoul metropolitan area when using a transportation card will rise to one-thousand-five-hundred-50 won or slightly above one U.S. dollar. The current base fare for the subway stands at one-thousand-four-hundred won. The hike in fare follows a meeting among officials of Seoul Metro and their counterparts from Gyeonggi-do Province Incheon City and the Korea Railroad Corporation.

Stock

2025/04/28 20:00

2025. 4. 28. KOREAN STOCK MARKET KOSPI : 2,548.86 ▲2.56 +0.10% KOSDAQ : 719.41 ▼10.28 -1.41% KOSPI200 : 337.08 ▲0.21 +0.06% ASIAN STOCK MARKET NIKKEI225 : 35,839.99 ▲134.25 +0.38% HANG SENG : 21,971.96 ▼8.78 -0.04% SHANGHAI : 3,288.42 ▼6.65 -0.20% WALL STREET (April 25) DOW JONES : 40,113.50 ▲20.10 +0.05% NASDAQ : 17,382.94 ▲216.90 +1.26% S&P500 : 5,525.21 ▲40.44 +0.74% EXCHANGE RATE USD : 1,442.60 (+6.10) JPY : 1,004.07 (+4.17) CNY : 197.65 (+0.49) EUR : 1,639.80 (+10.52)

S. Korea-U.S. tariff talks ease uncertainty, open path for orderly consultation: finance minister

2025/04/28 17:00

Meanwhile here in Korea. Finance Minister Choi Sang-mok believes the most recent tariff talks with the U.S. have paved the path for orderly consultations. This belief was shared to members of the media this past Sunday at Incheon International Airport upon his arrival from Washington D.C. to attend the spring gatherings of the World Bank Group and the International Monetary Fund as well as the two-plus-plus trade talks with Trump administration's officials. According to Choi the talks have laid the groundwork for future discussions.

S. Korea-U.S. tariff talks ease uncertainty, open path for orderly consultation: finance minister

2025/04/28 10:00

South Korea's Finance Minister Choi Sang-mok said Sunday that trade talks with the U.S. last week eased uncertainties and opened the path for orderly consultations. The finance chief made the remarks upon arriving at Incheon International Airport, returning from the U.S. capital, where he held trade talks with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, alongside Seoul's industry minister Ahn Duk-geun. According to Choi, Seoul "clarified the agenda items and laid the groundwork for future negotiations." The finance minister also said that he fully explained to the U.S. side about the upcoming snap presidential election, and the need for cooperation with the National Assembly on the tariff talks.

S. Korea, U.S. to seek package deal on lifting tariffs by July

2025/04/25 20:30

Welcome to Within The Frame, where we bring the most pressing issues across the globe into focus. I'm Kim Mok-yeon. Top trade and finance officials from South Korea and the United States sat down in Washington for high-level talks on Thursday, in a strategic "2+2" format. The U.S. had requested the meeting, underscoring the urgency and weight of the agenda. With the current mutual tariff suspension set to expire on July 8th, and industrial stakes running high, much attention was focused on the meeting, which could prove to be a turning point in the economic bilateral relationship. Though the Korean government emphasized this was a consultation, not a negotiation, U.S. Treasury Secretary Scott Bessent called it a success, stating that Korea had brought its "best proposal." That rare praise hints at substantive groundwork being laid — possibly in key sectors like energy, shipbuilding, and advanced manufacturing. With formal negotiations set to begin next week and a change of government on the horizon in Seoul, the key question now is whether both sides can reach a consensus before political dynamics, policy differences, and mounting pressure come into play. For a deeper discussion on this, we're joined by Kim Minkyun, Professor at Sogang Business School. Welcome. Also joining us is Troy Stangarone, Former Senior Director at the Korea Economic Institute. Great to have you. 1. (Stangarone) So let's begin with Director Stangarone, the high-level Korea-U.S. trade talks, which took place at the request of the United States. Why do you think the U.S. proposed a "2+2" format involving both the Treasury Secretary and the Trade Representative? 2. (Kim) Now to Prof. Kim, the Korean government emphasized that this was a consultation, and not a negotiation. How would you assess the significance of this meeting? 3. (Kim) Following the talks, U.S. Treasury Secretary Scott Bessent described Korea as having "brought its best proposal" and called the consultation a success. While the details were not disclosed, what do you think Korea proposed, and why did the U.S. respond so positively? Could it relate to industrial cooperation in areas like energy or shipbuilding? 4. (Kim) It has been reported that both countries agreed to work on a "July Package" ahead of the expiration of the mutual tariff suspension on July 8th, which would address tariff elimination and industrial cooperation. In your view, what is the biggest sticking point in reaching this agreement? 5. (Stangarone) Director Stangarone, President Trump previously referred to a "one-stop shop" approach, suggesting that defense cost-sharing could be bundled with trade negotiations. However, it is said that there was no mention of defense cost-sharing during this round of consultations. Why do you think that is? 6. (Kim) Some believe that defense cost-sharing could come up in the next round. Korea maintains that trade and security are separate matters. Given that stance, Prof. Kim, how should Korea prepare for future talks? 7. (Kim) After the consultations, the Korean government said that both sides had a shared understanding of the need for calm and orderly discussions, taking Korea's political schedule into account. However, U.S. Treasury Secretary Scott Bessent stated that talks are moving quickly and suggested a deal could be reached as early as next week. How do you interpret this difference in tone between the two sides? 8. (Both) Formal negotiations are expected to begin as early as next week, but a comprehensive agreement — including tariff elimination — may be reached under the next Korean administration and the Trump administration. In that case, how should the current Korean government respond to the fast pace being pushed by the U.S.? 9. (Kim) From April 1st to 20th, Korea's exports to the U.S. dropped 14.3% compared to the same period last year. Even auto parts, which have yet to face tariffs, declined by 1.7%. What's driving this decline in export performance? And what economic impact could the now full-fledged Korea-U.S. trade talks have?