News

S. Korea, U.S. seek to reach deal on removing tariffs, before tariff pause ends in July

2025/04/25 20:00

Thank you for joining us. I'm Yoon Jung-min. During their first "two-plus-two" trading meeting, South Korea and the U.S. have explored what would be available when it comes to removing new U.S. tariffs. They have agreed upon a "July package" deal, with no mention of the allies' defense-cost sharing, when in fact U.S. President Trump signaled that the issue will be separated from tariff negotiations. Bae Eun-ji starts us off. South Korea and the United States have agreed to produce a package of deals to remove new U.S. tariffs before the July 8 deadline, when the 90-day pause on reciprocal tariffs is lifted. This was discussed by South Korea's Deputy Prime Minister Choi Sang-mok and trade minister Ahn Duk-geun, alongside U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer during a high-level meeting in Washington on Thursday local time. Seoul's trade ministry said in a statement that it requested exemptions from reciprocal tariffs and offered cooperation on shipbuilding and energy. Following the meeting, finance minister Choi said the two sides agreed to aim for a deal by early July, and explained they will hold further discussions on four key areas of mutual interest: tariffs and non-tariff measures, economic security, investment cooperation, and currency policy. "We focused particularly on the automobile sector, which faces the greatest negative impact." Choi also said they asked for understanding from the U.S., as the negotiation process could be affected by Korea's political schedule and the upcoming presidential election. He added that the two sides agreed to discuss this in detail when Greer visits South Korea to take part in the APEC trade ministers' meeting, scheduled to take place for two days starting May 15th. Unlike trade talks between the U.S. and Japan, Thursday's meeting between Seoul and Washington did not include a discussion on the issue of sharing the cost of American troops in Korea. In fact, Trump said in a White House press briefing on Thursday that the military will not be subject to any deals, signaling that the issue of U.S. troop costs will be discussed separately, apart from tariff negotiations --in what pundits in Seoul believe the U.S. could be taking a "two-track approach." Meanwhile, Bessent also told reporters that the two countries had a "very successful" meeting, without disclosing further details on the talks. "We may be moving faster than I thought, and we will be talking technical terms as early as next week, as we reach an agreement on understanding as soon as next weekend. So South Koreans came early, they came with their A-game, and we will see if they follow through on that." South Korea, which faces 25% U.S. reciprocal tariffs, plans to leverage its shipbuilding capabilities in upcoming tariff negotiations. Trade minister Ahn told parliament earlier that the Trump administration has expressed great interest in cooperation in shipbuilding, and said this will become an important negotiating card for Korea. "U.S. is in urgent need of support in the shipbuilding sector as you mentioned, while Korea possesses world-most advanced shipbuilding capacity. Moving forward, if Korea and U.S. expand cooperation in shipbuilding and other technology sectors, it could serve as a channel to broaden discussion into other areas, leading to favorable negotiations." Eyes are now on whether the two countries will be able to reach a fruitful deal that will exempt South Korea from higher levies. Bae Eun-ji, Arirang News.

S.KOREA, U.S. SEEK DEAL ON TARIFFS BEFORE JULY DEADLINE

2025/04/25 17:00

Welcome to Press Perspective for this Friday April 25th here in Seoul. I'm Min Sun-hee. Top South Korean finance and trade officials sat down with their U.S. counterparts for talks on tariffs in Washington D.C. on Thursday local time and for details on those discussions and more I have Ruy Valdes with Spanish news agency EFE Spain. Ruy welcome back. I also have Professor Oh Joon-seok at Sookmyung Women's University joining this session virtually. Professor Oh it's a pleasure. 1) Ruy, let's begin with details about the two-plus-two meeting between South Korea and the U.S. in Washington D.C. 2) Professor Oh, what are your takeaways from the two-plus-two meeting ? 3) And Ruy, what has been the response to this latest meeting between the two countries? I mean, prior to the meeting, acting President Han Duck-soo had spoken about a win-win solution on tariffs and trade. 4) Professor Oh, what would you highlight as three immediate tasks for South Korea following these latest talks ? 5-1) Ruy, ahead of these talks, the International Monetary Fund shared some pessimistic projections about the global economy for this year. Walk us through the IMF's latest growth outlooks. 5-2) And Ruy, findings back on Thursday show the Korean economy contracted in the first quarter of this year. What are pundits saying about the causes of this contraction? 6) Professor Oh, also regarding the Korean economy. Exports during the first twenty days of April fell on year. Do share details about this decline with us, and is this trend likely to continue? And if so, what can South Korea do to ease it? 7) Ruy, moving forward. A number of foreign media outlets are citing a Korean daily for its report about China asking at least two South Korean transformer manufacturers not to supply products containing Chinese-sourced rare earth metals to U.S. defense companies. Do tell us more. 8) Professor Oh, how should South Korea seek to respond to the rivalry between the U.S. and China? All right.

S. Korea, U.S. seek to reach deal on removing tariffs, before tariff pause ends in July

2025/04/25 17:00

We start over in the U.S. where top finance and trade officials from Seoul and Washington met on Thursday for their much anticipated talks on tariffs. Our Bae Eun-ji covers these talks. South Korea and the United States have agreed to produce a package of deals to remove new U.S. tariffs before the July 8 deadline, when the 90-day pause on reciprocal tariffs is lifted. This was discussed by South Korea's Deputy Prime Minister Choi Sang-mok and trade minister Ahn Duk-geun, alongside U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer during a high-level meeting in Washington on Thursday local time. Seoul's trade ministry said in a statement that it requested exemptions from reciprocal tariffs and offered cooperation on shipbuilding and energy. Following the meeting, finance minister Choi said the two sides agreed to aim for a deal by early July, and explained they will hold further discussions on four key areas of mutual interest: tariffs and non-tariff measures, economic security, investment cooperation, and currency policy. "We focused particularly on the automobile sector, which faces the greatest negative impact." Choi also said they asked for understanding from the U.S., as the negotiation process could be affected by Korea's political schedule and the upcoming presidential election. He added that the two sides agreed to discuss this in detail when Greer visits South Korea to take part in the APEC trade ministers' meeting, scheduled to take place for two days starting May 15th. Unlike trade talks between the U.S. and Japan, Thursday's meeting between Seoul and Washington did not include a discussion on the issue of sharing the cost of American troops in Korea. In fact, Trump said in a White House press briefing on Thursday that the military will not be subject to any deals, signaling that the issue of U.S. troop costs will be discussed separately, apart from tariff negotiations --in what pundits in Seoul believe the U.S. could be taking a "two-track approach." Meanwhile, Bessent also told reporters that the two countries had a "very successful" meeting, without disclosing further details on the talks. "We may be moving faster than I thought, and we will be talking technical terms as early as next week, as we reach an agreement on understanding as soon as next weekend. So South Koreans came early, they came with their A-game, and we will see if they follow through on that." South Korea, which faces 25% U.S. reciprocal tariffs, plans to leverage its shipbuilding capabilities in upcoming tariff negotiations. Trade minister Ahn told parliament earlier that the Trump administration has expressed great interest in cooperation in shipbuilding, and said this will become an important negotiating card for Korea. "U.S. is in urgent need of support in the shipbuilding sector as you mentioned, while Korea possesses world-most advanced shipbuilding capacity. Moving forward, if Korea and U.S. expand cooperation in shipbuilding and other technology sectors, it could serve as a channel to broaden discussion into other areas, leading to favorable negotiations." Eyes are now on whether the two countries will be able to reach a fruitful deal that will exempt South Korea from higher levies. Bae Eun-ji, Arirang News.

Shipping volumes slump amid conflicting tariffs signals from U.S. and China

2025/04/25 17:00

Shipments from China to the U.S. have reportedly shrank substantially as Beijing continues to contradict the U.S. leader's claims that tariff talks with China are on track. Moon Hye-ryeon has the latest. The global container shipping industry is showing early signs of strain amid U.S.-China trade tensions. According to the Wall Street Journal, Hapag-Lloyd – the world's fifth-largest shipping company – said bookings for U.S.-bound containers from China have dropped by nearly a third since the U.S. announced steep tariff hikes earlier this month. In response, demand has surged for shipments from Southeast Asian countries, including Thailand and Cambodia, signaling that businesses are rerouting supply chains. A company spokesperson said a substantial volume of cargo from China is being held back, and smaller vessels may be used due to the decline. With the U.S. imposing a 10 percent blanket tariff on most partners and up to 145 percent on Chinese goods, some Chinese exporters have paused shipments altogether. Meanwhile, U.S. President Donald Trump has continued to insist that negotiations with China are ongoing, claiming that he held trade talks on Thursday morning. Speaking to reporters at the White House, Trump said that the contents of the trade talks may be revealed later, but did not elaborate further. Trump had suggested the day before that the U.S. was "actively" negotiating with China, raising hopes that a deal to "substantially" lower tariffs on Chinese imports could be imminent. However, Beijing dismissed Trump's claims of trade talks between the world's two largest economies. According to the Chinese Foreign Ministry spokesperson, Trump's claims are "fake news." "This is fake news. As far as I know, China and the United States have not held consultations or negotiations on the tariff issue, let alone reached an agreement. This tariff war was initiated by the United States, and China's attitude is consistent and clear. If you want to fight, we will fight to the end; if you want to talk, the door is open. Dialogue and negotiation must be equal, respectful, and mutually beneficial." While Trump had told reporters that there were talks between the two countries, his treasury secretary, Scott Bessent, said no formal negotiations had taken place. Moon Hye-ryeon, Arirang News.

S. Korea, U.S. seek to reach deal on removing tariffs, before tariff pause ends in July

2025/04/25 10:00

Finance and trade officials from South Korea and the United States met in Washington for talks, as Seoul seeks a path to be exempted from tariffs, before the pause on tariffs ends in July. Bae Eun-ji has the key takeaways from the meeting. South Korea and the United States have agreed to produce a package of deals to remove new U.S. tariffs before the July 8 deadline, when the 90-day pause on reciprocal tariffs is lifted. This was discussed by South Korea's Deputy Prime Minister Choi Sang-mok and trade minister Ahn Duk-geun, alongside U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer during a high-level meeting in Washington on Thursday local time. Seoul's trade ministry said in a statement that it requested exemptions from reciprocal tariffs and offered cooperation on shipbuilding and energy. Following the meeting, finance minister Choi said the two sides agreed to aim for a deal by early July and explained they will hold further discussions on four key areas of mutual interest: tariffs and non-tariff measures, economic security, investment cooperation, and currency policy. "We focused particularly on the automobile sector, which faces the greatest negative impact." Choi also said they asked for understanding from the U.S., as the negotiation process could be affected by Korea's political schedule and the upcoming presidential election. He added that the two sides agreed to discuss this in detail when Greer visits South Korea to take part in the APEC trade ministers' meeting, scheduled to take place for two days starting May 15th. Meanwhile,.. Bessent also told reporters that the two countries had a "very successful" meeting without disclosing further details on the talks. "We may be moving faster than I thought, and we will be talking technical terms as early as next week, as we reach an agreement on understanding as soon as next weekend. So South Koreans came early, they came with their A-game, and we will see if they follow through on that." South Korea, which faces 25% U.S. reciprocal tariffs is among the first countries the Trump administration has initiated trade talks with. Eyes are now on whether the two countries will be able to reach a fruitful deal that will exempt South Korea from higher levies. Bae Eun-ji, Arirang News.

Seoul sets strategy for upcoming U.S. trade talks with finance and trade chiefs

2025/04/24 20:00

Thank you for joining us. I'm Yoon Jung-min. Trade and finance chiefs will be sitting down with their U.S. counterparts in Washington in the coming hour. Their focus is expected to be on addressing tariffs announced by the Trump administration, including the so-called reciprocal tariffs. Our Moon Hye-ryeon has the details. As trade talks with the United States approach, the South Korean delegation has been making final preparations, holding a last-minute strategy session to review negotiation plans and assess potential scenarios. On Wednesday local time in Washington, Finance Minister Choi Sang-mok and Trade Minister Ahn Duk-geun convened a meeting with the delegation focused on reaffirming the objectives of the upcoming talks and mapping out tailored responses based on anticipated responses from Trump's trade negotiation team. The talks scheduled for Thursday will bring together South Korea's Finance Minister Choi, Trade Minister Ahn, U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer. This "2+2" format, which includes both finance and trade chiefs from each country, marks a significant expansion from the traditional bilateral finance ministerial meetings typically held. Upon arrival in the U.S., Choi said that he aims to further strengthen the alliance between the two countries. Ahn also spoke with reporters on Wednesday, outlining Seoul's primary objective: removing the reciprocal tariffs alongside separate levies on automobiles. "Not long ago, a company like Hyundai Motor announced a large-scale investment plan in the U.S., so we intend to actively engage in discussions on that front to find a smooth and mutually agreeable solution to the issue." When asked about whether the government's strategy has shifted in light of Washington's recent softening stance on tariffs, Ahn stated that the delegation plans to stick to what they have prepared. He also clarified that defense cost-sharing is not on the agenda, despite Bessent's recent comments stating that trade and defense cost issues cannot be viewed separately. As for what comes after the talks, Ahn explained that future discussions will be determined following Thursday's meeting. Moon Hye-ryeon, Arirang News.

S. Korean companies show strong sales for Q1

2025/04/24 20:00

Despite economic uncertainty largely stemming from the new U.S. tariffs, Korean companies have been performing strongly. First quarter sales for Hyundai Motors were at a record high for the quarter of 44-trillion won, or some 31-billion U.S. dollars. Operating profits also increased by some 2-percent compared to the same period last year. This was mostly driven by eco-friendly vehicles, including hybrid cars. LG Electronics also saw record-high sales for the quarter with an increase of nearly 8-percent from a year ago. The company attributed this to its B2B business as well as its heating, ventilation, and air conditioning solutions.

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

2025/04/24 20:00

The Korean economy posted negative growth in the first quarter. In fact, quarterly growth has been very low for four straight quarters, meaning a warning sign to the local economy. Shin Se-byuck reports. According to the Bank of Korea on Thursday, South Korea's real gross domestic product, a key indicator of the economy, shrank by 0-point-2 percent on-quarter in Q1. This marks the steepest contraction since the fourth quarter of 2022, when the economy,.. hit by the COVID-19 pandemic, contracted by 0.5 percent. It's also the first negative growth in three quarters. What's more concerning is that quarterly growth has remained below point-1 percent for four consecutive quarters, something that hasn't happened since related statistics were first compiled in 1960. Breaking it down, private consumption and government spending fell by 0-point-1 percent, while construction investment plunged 3-point-2 and facility investment dropped 2-point-1 percent, dragging down the overall growth. Exports declined by 1-point-1 percent, while imports dropped 2 percent, mostly due to falling energy imports. In fact, the Bank of Korea had already hinted at a possible contraction last week. It cited several factors, including prolonged political uncertainty at home and dampened economic sentiment triggered by U.S. tariff policies. There's also the temporary halt to construction activity and a delay in demand for high-performance semiconductors like HBM chips. Given these setbacks, South Korea's full-year growth is now expected to fall short of the Bank of Korea's February forecast of 1-point-5 percent. An updated projection is expected next month, after factoring in the supplementary budget currently under review by the National Assembly and developments in global trade talks. However, one expert says that these measures alone are not enough to bring about a full economic rebound. "Korea's private consumption is worth around 5 quadrillion won in sales terms meaning it's so large that even a 15 to 30 trillion won supplementary budget would barely lift the growth rate by 0.5 percentage points. As for trade talks with the U.S., favorable terms for Seoul won't mean much if global demand remains sluggish." To raise the growth rate by more than one percentage point, he emphasized, Korea must revive domestic consumption,.. and a cut in value-added tax could be key to that effort. Shin Se-byuck, Arirang News.

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

2025/04/24 17:00

Meanwhile further fueling concerns over the fate of the South Korean economy findings for the first quarter of this year show a contraction in economic activity. Shin Se-byuck reports. According to the Bank of Korea on Thursday, South Korea's real gross domestic product, a key indicator of the economy, shrank by 0-point-2 percent on-quarter in Q1. This marks the steepest contraction since the fourth quarter of 2022, when the economy,.. hit by the COVID-19 pandemic, contracted by 0.5 percent. It's also the first negative growth in three quarters. What's more concerning is that quarterly growth has remained below point-1 percent for four consecutive quarters, something that hasn't happened since related statistics were first compiled in 1960. Breaking it down, private consumption and government spending fell by 0-point-1 percent, while construction investment plunged 3-point-2 and facility investment dropped 2-point-1 percent, dragging down the overall growth. Exports declined by 1-point-1 percent, while imports dropped 2 percent, mostly due to falling energy imports. In fact, the Bank of Korea had already hinted at a possible contraction last week. It cited several factors, including prolonged political uncertainty at home and dampened economic sentiment triggered by U.S. tariff policies. There's also the temporary halt to construction activity and a delay in demand for high-performance semiconductors like HBM chips. Given these setbacks, South Korea's full-year growth is now expected to fall short of the Bank of Korea's February forecast of 1-point-5 percent. An updated projection is expected next month, after factoring in the supplementary budget currently under review by the National Assembly and developments in global trade talks. However, one expert says that these measures alone are not enough to bring about a full economic rebound. "Korea's private consumption is worth around 5 quadrillion won in sales terms meaning it's so large that even a 15 to 30 trillion won supplementary budget would barely lift the growth rate by 0.5 percentage points. As for trade talks with the U.S., favorable terms for Seoul won't mean much if global demand remains sluggish." To raise the growth rate by more than one percentage point, he emphasized, Korea must revive domestic consumption,.. and a cut in value-added tax could be key to that effort. Shin Se-byuck, Arirang News.

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

2025/04/24 10:00

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

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

2025/04/24 10:00

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

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

2025/04/23 20:00

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

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

2025/04/23 20:00

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

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

2025/04/23 17:00

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

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

2025/04/23 17:00

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

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

2025/04/23 17:00

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

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

2025/04/23 10:00

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

Wall Street stumbles as Trump bashes Fed chair Powell again

2025/04/22 20:00

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

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

2025/04/22 20:00

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

Wall Street stumbles as Trump bashes Fed chair Powell again

2025/04/22 17:00

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