News

Stock&FX

2025/07/14 22:39

2025. 7. 14. KOREAN STOCK MARKET KOSPI : 3,202.03 ▲26.26 +0.83% KOSDAQ : 799.37 ▼-1.10 -0.14% KOSPI200 : 432.49 ▲4.42 +1.03% ASIAN STOCK MARKET NIKKEI225 : 39,459.62 ▼110.06 -0.28% HANG SENG : 24,203.32 ▲63.75 +0.26% SHANGHAI : 3,519.65 ▲9.47 +0.27% WALL STREET (July 11) DOW JONES : 44,371.51 ▼279.13 (-0.63%) NASDAQ : 20,585.53 ▼45.14 (-0.22%) S&P500 : 6,259.75 ▼ 20.71 (-0.33%) EXCHANGE RATE USD : 1,381.20 (+5.80) JPY : 937.33 (+0.82) CNY : 192.65 (+0.83) EUR : 1,610.20 (+3.53)

Drivers behind S. Korea’s record-breaking used car exports

2025/07/14 19:39

In other news. South Korea's pre-owned cars have been driving up the country's exports in recent months. Our business correspondent Park Jun-han covers this trend and its prospects. What some in Korea see as outdated or no longer needed can become a brand new start on the other side of the world. Such as used cars. South Korea's used car export market is gaining momentum, with shipments this year projected to exceed 10 trillion won—approximately 7.25 billion U.S. dollars—for the first time on record. With rising popularity in the Middle East, exports in June 2025 alone jumped nearly 68 percent year-on-year, extending the strong growth trend that began in the early 2020s. I'm sitting in a used Korean car that is ready to be shipped overseas. In fact, thousands of cars like this leave this lot every day to welcome new owners around the world. Still runs perfectly. Industry insiders claim that the vehicles made in Korea are well-known for their affordability, reliability, and accessibility. “Korean used cars are exported to around 160 countries. Not only are they high in quality and equipped with many features, but they're also competitively priced. On top of that, Korea has a well-established parts supply system and after-sales services around the world.” Used car exports involve complex but streamlined processes, including vehicle collection, inspection, repairs, deregistration, and coordination with customs brokers and freight forwarders. Once loaded onto ships, vehicles begin their second life overseas. Despite the positive outlook, there are looming risks. Local exporters shared concern over rising shipping costs and tightening import regulations abroad, especially in light of the U.S. government's recent tariff actions that could impact the price of overseas car shipping. “Our biggest concern right now, especially with the hike in U.S. tariffs, is the spike in freight rates. A couple of months ago, the cost nearly tripled, and it's been fluctuating ever since. That's become one of the biggest challenges for dealers like us.” Supported by continued demand for used vehicles, coupled with government support to deal with regulatory challenges in global trade, South Korea's used vehicle exports are expected to grow steadily. Park Jun-han, Arirang News.

[Weekly Focus] U.S. tariffs impact on Korean cars, K-beauty products, and Buldak noodles

2025/07/12 12:35

U.S. President Donald Trump has been announcing tariff rates on a daily basis now, whether it's reciprocal tariffs by country or by product, such as autos and steel. Now, South Korean officials say there is room for negotiation, but where do we go from here? We have our Kim Do-yeon in the studio with us for more. Welcome, Do-yeon. Thanks for having me. First, Do-yeon, walk us through the South Korea and U.S. trading relationship at this moment in time. Eun-ji it hasn't been looking good for South Korea. From January to April, the United States' imports hit an all-time high, but imports from South Korea actually declined, causing Korea's ranking among U.S. import partners to fall by three places from 7th last year to 10th, according to the Korea International Trade Association. Take a listen to an expert explaining the situation. "Even among the top 10 import partners, only China and Korea saw a decline. In Korea's case, it's notable that key Korean export items are increasingly being replaced by those from countries like Vietnam, Mexico, and Taiwan." We also have to keep in mind that many of the items that South Korea sells to the U.S. are subject to separate tariff rates. For example, we know autos will have 25-percent tariffs imposed under Section 232. Autos are more than 30-percent of South Korea's exports to the U.S. Chips and pharmaceuticals will also have their own tariff rates, and of course they are also some of South Korea's strengths in the export market. And, the White House has made it clear that these tariffs on specific items are not up for negotiation, saying South Korea is not likely to get its own lower tariff rates for these. 2. Let's focus on autos because we have the number now. 25-percent could be big, and we saw Hyundai Motor Group expanding production in the U.S. to avoid this. How is South Korea faring? Now, in terms of competition. A 25-percent tariff is applied to all items, so the playing field is still level against major competitors like Japan. Autos and auto parts are the number one export items to the U.S. for Korea and Japan. But, Mexico is a competitor that has an advantage over South Korea. Take a listen. "We should pay particular attention to Mexico. In the case of automobiles and auto parts, Mexico benefits from lower tariff rates under the USMCA, which puts Korea at a relative disadvantage in terms of price competitiveness. Moreover, Mexico's share of the U.S. import market for automobiles and parts has been expanding rapidly in recent years." And in terms of pricing competition, currency is also something to look into. And that is why the U.S. has been monitoring the dollar exchange rate closely as it comes up with the tariff rates. First, take a listen to how this works. "Let's say a 10% tariff is imposed, but at the same time, the exchange rate rises by 10%. In that case, the price doesn't become 10% higher — even with the tariff, thanks to the weaker currency, it effectively stays at one dollar. That's why a weaker currency neutralizes the impact of tariffs. So we end up comparing how much the yen has weakened versus how much the won has weakened." Now, that is why South Korea and Japan are likely to enjoy better tariff rates than China. While the won and yen are decided according to market trends, the Chinese yuan is not really decided in that way. 3. Right now let's go back to the 25 percent of course it's open to negotiation, but if autos, chips, and pharmaceuticals are getting their own tariff rates, what should South Korea be concerned about? Eunji, there are two items that come to mind for this. K-beauty products and ramyeon. These two items have been on the rise when it comes to exports to the U.S. In fact, South Korea ranks first in cosmetics exports to the U.S., and as we all know Buldak noodles has been some sort of a phenomenon in the U.S. Now, let's focus on the beauty products first. Many of the items popular in the U.S. are indie brands that are sold on Amazon. Of course, these are subject to the reciprocal tariffs. There are some that produce locally in the U.S., such as the biggest Korean OEM and ODM cosmetic companies, but that's a small portion. Also, big cosmetic brands are looking for ways to start local production. "In particular, major Korean cosmetics companies like AmorePacific and LG don't have local manufacturing facilities in the U.S. right now, so they're considering options like acquiring existing plants through M&A, since building new factories on-site isn't feasible in the immediate term." On top of this, consumers are smart. There have been trends of people hoarding Korean sunblock before the tariff hit to survive the summer in the U.S. Now, as for the ramyeon industry the two biggest players are facing different fates. Nongshim, the maker of Shin Ramyeon, localized production in the U.S. for all its supplies. Samyang the maker of Buldak exports all from South Korea so the company is closely monitoring the negotiation process. Do-yeon, thanks for coming in tonight.

Stock

2025/07/11 23:45

2025. 7. 11. KOREAN STOCK MARKET KOSPI : 3,175.77 ▼7.46 -0.23% KOSDAQ : 800.47 ▲2.77 +0.35% KOSPI200 : 428.07 ▼0.35 -0.08% ASIAN STOCK MARKET NIKKEI225 : 39,569.68 ▼76.68 -0.19% HANG SENG : 24,139.57 ▲111.20 +0.46% SHANGHAI : 3,510.18 ▲0.49 +0.01% WALL STREET (July 10) DOW JONES : 44,650.64 ▲192.34 +0.43% NASDAQ : 20,630.67 ▲19.32 +0.09% S&P500 : 6,280.46 ▲17.20 +0.27% EXCHANGE RATE USD : 1,375.40 (+5.40) JPY : 936.51 (-0.15) CNY : 191.82 (+0.98) EUR : 1,606.67 (-1.64)

KOSPI soars above 3,200 in intraday trading, KOSDAQ reclaims 800

2025/07/11 23:38

South Korea's main stock index is on a tear — hitting levels not seen in nearly four years — as policy hopes and chips drive investor optimism. In addition, the market already seems to be immune to U.S. tariff threats. Our Kim Do-yeon reports. The benchmark KOSPI once again hit a new yearly high during intra-day trading on Friday surpassing the 32-hundred mark briefly for the first time in 3 years and 10 months at one point, reaching 3,216. But it was a mixed trend as it fell later to close at 3,175.77, following a strong sell-off by foreign and institutional investors that caused it to briefly turn negative during the session. Boosted by overnight gains in shares of U.S. tech, major Korean semiconductor stocks saw simultaneous strength. SK hynix rose more than 3 percent during the session, briefly surpassing the 300,000 Korean won mark for the first time. The KOSDAQ also opened slightly higher and reclaimed the 800 level during intraday trading for the first time in 12 sessions. The total market capitalization also surpassed 3,000 trillion won for the first time. While there are some concerns about a breather after the rapid short-term rally, the overall view is that upward momentum remains intact. "It seems that continued expectations for the new administration's policies are still prompting some market funds to flow into the stock market. In addition, hopes for further discussions — such as on dividend taxes following the recent amendments to the Commercial Act — also appear to be having a positive impact on the domestic stock market." This comes after Thursday, when the KOSPI closed at 3,183.23, its highest finish in 3 years and 10 months. Comparing Friday's close to the lowest of the year on April 9, the KOSPI is up around 38.5 percent in a matter of 3 months. With "reciprocal" tariffs from the U.S. scheduled to take effect next month, the market largely believes these concerns have already been priced in. Expectations for interest rate cuts and an additional stock market stimulus are also seen as supporting investor sentiment. The previous all-time high for the KOSPI was 3,316.08 points, recorded on June 25, 2021, and hopes are growing in the securities industry that this level could be surpassed soon. Kim Do-yeon, Arirang News.

Minimum Wage Commission reaches agreement on next year's minimum wage at KRW 10,320 per hour

2025/07/11 23:36

The minimum wage for next year has been set at 10-thousand 320 Korean won. That's about 7 U.S. dollars and 50 cents. The settlement was produced through the very first agreement between all the negotiating parties in 17 years. Our Kim Bo-kyoung has more. Starting next year, the hourly minimum wage would be 10-thousand-3-hundred-20 Korean won, around seven dollars and 50 cents. This, as the Minimum Wage Commission reached an agreement on Thursday, to raise the minimum wage by 2-hundred-90 Korean won, that is two-point-nine percent, from this year's minimum wage of 10-thousand-30 Korean won per hour. If one works a standard monthly workload of two-hundred-nine hours, the new minimum wage translates to a monthly income of two million one hundred fifty-six thousand eight hundred eighty won. The commission is made up of nine representatives each from labor, management and the general public, obliged to review the new minimum wage by mid-July for the labor minister to make a formal announcement by early August every year. This year's decision marks the first agreement reached among the three sides in 17 years. If an agreement can't be made, the increase is decided by majority vote. The 2-point-9-percent increase is the lowest first-year hike under any administration since 2000, though minimum wage increases tend to be higher than average in the first year of a new administration. During first year of the Moon Jae-in administration, the minimum wage was raised by more than 16-percent, while for the first year of the Yoon Suk Yeol administration, it went up by five percent. The management side said they agreed to the decision after much deliberation "It was a very difficult decision, made based on the thought that it would be better to support harmony and unity as the new government begins, rather than create more conflict." while, the labor side said the government should come up with measures to help low-paid workers. "It would be the Lee Jae Myung administration's task to deal with any areas that are insufficient. It must come up with strong measures to help low-wage workers cover their living costs." After the Commission submits an agreed minimum wage for next year to the labor ministry, the ministry will finalize and announce it by August 5th, after the review process. The new rate will take effect starting the very first day of January next year. The presidential office called the commission's decision significant and added that the government will actively ensure the minimum wage is followed through promotion, guidance, and supervision. Kim Bo-kyoung, Arirang News.

Minimum Wage Commission reaches agreement on next year's minimum wage at KRW 10,320 per hour

2025/07/11 19:38

South Korea's hourly minimum wage has been set at 10-thousand-3-hundred-20 won starting next year up 2-point-9 percent from the current rate in a unanimous decision among the labor management and public the first in 17 years. Our Kim Bo-kyoung has more. Starting next year, the hourly minimum wage would be 10-thousand-3-hundred-20 Korean won, around seven dollars and 50 cents. This, as the Minimum Wage Commission reached an agreement on Thursday, to raise the minimum wage by 2-hundred-90 Korean won, that is two-point-nine percent, from this year's minimum wage of 10-thousand-30 Korean won per hour. If one works a standard monthly workload of two-hundred-nine hours, the new minimum wage translates to a monthly income of two million one hundred fifty-six thousand eight hundred eighty won. The commission is made up of nine representatives each from labor, management and the general public, obliged to review the new minimum wage by mid-July for the labor minister to make a formal announcement by early August every year. This year's decision marks the first agreement reached among the three sides in 17 years. If an agreement can't be made, the increase is decided by majority vote. The 2-point-9-percent increase is the lowest first-year hike under any administration since 2000, though minimum wage increases tend to be higher than average in the first year of a new administration. During first year of the Moon Jae-in administration, the minimum wage was raised by more than 16-percent, while for the first year of the Yoon Suk Yeol administration, it went up by five percent. The management side said they agreed to the decision after much deliberation "It was a very difficult decision, made based on the thought that it would be better to support harmony and unity as the new government begins, rather than create more conflict." while, the labor side said the government should come up with measures to help low-paid workers. "It would be the Lee Jae Myung administration's task to deal with any areas that are insufficient. It must come up with strong measures to help low-wage workers cover their living costs." After the Commission submits an agreed minimum wage for next year to the labor ministry, the ministry will finalize and announce it by August 5th, after the review process. The new rate will take effect starting the very first day of January next year. The presidential office called the commission's decision significant and added that the government will actively ensure the minimum wage is followed through promotion, guidance, and supervision. Kim Bo-kyoung, Arirang News.

Bitcoin hits new all-time high above US$ 116,000

2025/07/11 19:37

Bitcoin continued its rally to hit yet another high over the past 24 hours. According to U.S.-based crypto exchange Coinbase Bitcoin hit 1-hundred-16-thousand-4-hundred-74 dollars at 5:40 PM on Thursday U.S. Eastern Time. Pundits are linking the recent rally to steady capital inflows into Exchange-Traded Funds and the growing presence of companies adopting cryptocurrency as an asset.

KOSPI soars above 3,200 in intraday trading, KOSDAQ reclaims 800

2025/07/11 19:36

U.S. tariff threats appear to be doing little to dampen investor sentiment in the local stock market with the KOSPI soaring past the 3-thousand-2-hundred mark at one point during trade on this Friday afternoon before closing its session slightly lower. Our correspondent Kim Do-yeon covers the latest rally and more. The benchmark KOSPI once again hit a new yearly high during intra-day trading on Friday surpassing the 32-hundred mark briefly for the first time in 3 years and 10 months at one point, reaching 3,216. But it was a mixed trend as it fell later to close at 3,175.77, following a strong sell-off by foreign and institutional investors that caused it to briefly turn negative during the session. Boosted by overnight gains in shares of U.S. tech, major Korean semiconductor stocks saw simultaneous strength. SK hynix rose more than 3 percent during the session, briefly surpassing the 300,000 Korean won mark for the first time. The KOSDAQ also opened slightly higher and reclaimed the 800 level during intraday trading for the first time in 12 sessions. The total market capitalization also surpassed 3,000 trillion won for the first time. While there are some concerns about a breather after the rapid short-term rally, the overall view is that upward momentum remains intact. "It seems that continued expectations for the new administration's policies are still prompting some market funds to flow into the stock market. In addition, hopes for further discussions — such as on dividend taxes following the recent amendments to the Commercial Act — also appear to be having a positive impact on the domestic stock market." This comes after Thursday, when the KOSPI closed at 3,183.23, its highest finish in 3 years and 10 months. Comparing Friday's close to the lowest of the year on April 9, the KOSPI is up around 38.5 percent in a matter of 3 months. With "reciprocal" tariffs from the U.S. scheduled to take effect next month, the market largely believes these concerns have already been priced in. Expectations for interest rate cuts and an additional stock market stimulus are also seen as supporting investor sentiment. The previous all-time high for the KOSPI was 3,316.08 points, recorded on June 25, 2021, and hopes are growing in the securities industry that this level could be surpassed soon. Kim Do-yeon, Arirang News.

S. Korea keeps key rate steady at 2.5% in amid rising household debts

2025/07/11 14:34

We start with the Bank of Korea's decision to keep its rate unchanged at 2-point-5 percent amid a host of concerns both at home and abroad. Our correspondent Moon Ji-young reports. As widely expected, South Korea's central bank has held its benchmark interest rate steady at two-point-five percent. The Bank of Korea announced the decision on Thursday following the fifth Monetary Policy Committee meeting of the year, taking a break from a rate-cutting cycle after a cut of 25 basis points in May. "The domestic economy is expected to experience continued low growth for some time, while inflation remains on a stable trajectory, and there is considerable uncertainty related to trade negotiations. However, given the significant rise in capital area housing prices and household debt, coupled with the need to assess recent debt measures, it was deemed appropriate to maintain the current policy rate" Rhee also highlighted that it is necessary to cool expectations for a rate cut to prevent a rapid increase in housing prices in the greater Seoul area and to better manage household debt. According to one expert, housing prices have been rising, especially in the main capital area. " the rising inflation in apartment price, especially in the Seoul Gangnam area, it, which has been showing more than 10% year-over-year of our rate of increase and that is, I think almost the highest in almost 20 years except for 2017 and 2018." In response, the government last month implemented stricter mortgage regulations, capping mortgage loans for home purchases in the capital region and suspending home-backed loans for multi-homeowners. Notably, the rate-freeze decision was unanimous. However, four out of six board members voiced the need for further rate cuts in the next three months, factoring in tariff negotiations. Regarding the future rate outlook, an expert said: "Though not yet disbursed, supplementary budget funds are expected to make an impact in August. This increases the likelihood of a rate cut at the August meeting." Conversely, the other two members advocated for maintaining the rate, citing the record-high 2-percentage-point key rate gap that currently exists between South Korea and the U.S. The central bank predicts consumption to gradually recover, driven by the implementation of the supplementary budget as well as improving economic sentiment thanks to eased political uncertainty. Governor Rhee said he will take into consideration the effects of the extra budget once fully implemented in August. Meanwhile, U.S. tariff impositions pose great uncertainty on export prospects. The central bank emphasized that the outcomes of trade talks, especially regarding reciprocal tariffs on South Korea and specific items like semiconductors, will critically shape the country's export and growth paths. "The Bank of Korea said it will maintain its accommodative monetary policy stance, closely monitoring domestic and external conditions before deciding on the timing of further rate cuts. Moon Ji-young, Arirang News."

Minimum Wage Commission reaches agreement on next year's minimum wage at KRW 10,320 per hour

2025/07/11 11:48

The Minimum Wage Commission has decided to raise minimum wage by 2-point-9 percent next year. This, was the very first agreement between the negotiating parties in 17 years. Our Kim Bo-kyoung starts us off. Starting next year, the hourly minimum wage would be 10-thousand-3-hundred-20 Korean won, around seven dollars and 50 cents. This, as the Minimum Wage Commission reached an agreement on Thursday, to raise the minimum wage by 2-hundred-90 Korean won, that is two-point-nine percent, from this year's minimum wage of 10-thousand-30 Korean won per hour. If one works a standard monthly workload of two-hundred-nine hours, the new minimum wage translates to a monthly income of two million one hundred fifty-six thousand eight hundred eighty won. The commission is made up of nine representatives each from labor, management and the general public, obliged to review the new minimum wage by mid-July for the labor minister to make a formal announcement by early August every year. This year's decision marks the first agreement reached among the three sides in 17 years. If an agreement can't be made, the increase is decided by majority vote. The 2-point-9-percent increase is the lowest first-year hike under any administration since 2000, though minimum wage increases tend to be higher than average in the first year of a new administration. During first year of the Moon Jae-in administration, the minimum wage was raised by more than 16-percent, while for the first year of the Yoon Suk Yeol administration, it went up by five percent. The management side said they agreed to the decision after much deliberation "It was a very difficult decision, made based on the thought that it would be better to support harmony and unity as the new government begins, rather than create more conflict." while, the labor side said the government should come up with measures to help low-paid workers. "It would be the Lee Jae Myung administration's task to deal with any areas that are insufficient. It must come up with strong measures to help low-wage workers cover their living costs." After the Commission submits an agreed minimum wage for next year to the labor ministry, the ministry will finalize and announce it by August 5th, after the review process. The new rate will take effect starting the very first day of January next year. The presidential office called the commission's decision significant and added that the government will actively ensure the minimum wage is followed through promotion, guidance, and supervision. Kim Bo-kyoung, Arirang News.

Jane Birkin's original Birkin bag sells for US$ 10 mil. at Paris auction

2025/07/11 11:45

An original Hermès Birkin bag, designed in 1984 for Jane Birkin, sold at Sotheby's Paris on Thursday for approximately 10 million U.S. dollars, setting a new record as the most expensive handbag ever auctioned. The starting price was slightly over 1 million dollars, with a Japanese collector winning the bid over the phone. The leather handbag, created after Birkin famously sketched it on an airplane sick bag, bears her initials "J.B." and a fixed shoulder strap, unlike commercially sold models. Worn by Birkin for nearly nine years, the bag was originally auctioned in 1994 to benefit HIV/AIDS charities and subsequently sold in 2000.

Stock

2025/07/10 23:45

2025. 7. 10. KOREAN STOCK MARKET KOSPI : 3,183.23 ▲49.49 +1.58% KOSDAQ : 797.70 ▲7.34 +0.93% KOSPI200 : 428.42 ▲6.40 +1.52% ASIAN STOCK MARKET NIKKEI225 : 39,646.36 ▼174.92 -0.44% HANG SENG : 24,028.37 ▲136.05 +0.57% SHANGHAI : 3,509.68 ▲16.63 +0.48% WALL STREET (July 9) DOW JONES : 44,458.30 ▲217.54 +0.49% NASDAQ : 20,611.34 ▲192.87 +0.94% S&P500 : 6,263.26 ▲37.74 +0.61% EXCHANGE RATE USD : 1,370.00 (-5.00) JPY : 936.66 (+1.29) CNY : 190.84 (-0.57) EUR : 1,608.31 (-2.37)

S. Korea keeps key rate steady at 2.5% amid rising household debts

2025/07/10 23:44

The Bank of Korea decided to leave its key interest rate unchanged at 2.5%, prioritizing efforts to tame soaring housing prices in the capital region, and to better control household debt following the government's announcement of its real estate policy. Our Moon Ji-young starts us off. As widely expected, South Korea's central bank has held its benchmark interest rate steady at two-point-five percent. The Bank of Korea announced the decision on Thursday following the fifth Monetary Policy Committee meeting of the year, taking a break from a rate-cutting cycle after a cut of 25 basis points in May. "The domestic economy is expected to experience continued low growth for some time, while inflation remains on a stable trajectory, and there is considerable uncertainty related to trade negotiations. However, given the significant rise in capital area housing prices and household debt, coupled with the need to assess recent debt measures, it was deemed appropriate to maintain the current policy rate" Rhee also highlighted that it is necessary to cool expectations for a rate cut to prevent a rapid increase in housing prices in the greater Seoul area and to better manage household debt. According to one expert, housing prices have been rising, especially in the main capital area. " the rising inflation in apartment price, especially in the Seoul Gangnam area, it, which has been showing more than 10% year-over-year of our rate of increase and that is, I think almost the highest in almost 20 years except for 2017 and 2018." In response, the government last month implemented stricter mortgage regulations, capping mortgage loans for home purchases in the capital region and suspending home-backed loans for multi-homeowners. Notably, the rate-freeze decision was unanimous. However, four out of six board members voiced the need for further rate cuts in the next three months, factoring in tariff negotiations. Regarding the future rate outlook, an expert said: "Though not yet disbursed, supplementary budget funds are expected to make an impact in August. This increases the likelihood of a rate cut at the August meeting." Conversely, the other two members advocated for maintaining the rate, citing the record-high 2-percentage-point key rate gap that currently exists between South Korea and the U.S. The central bank predicts consumption to gradually recover, driven by the implementation of the supplementary budget as well as improving economic sentiment thanks to eased political uncertainty. Governor Rhee said he will take into consideration the effects of the extra budget once fully implemented in August. Meanwhile, U.S. tariff impositions pose great uncertainty on export prospects. The central bank emphasized that the outcomes of trade talks, especially regarding reciprocal tariffs on South Korea and specific items like semiconductors, will critically shape the country's export and growth paths. "The Bank of Korea said it will maintain its accommodative monetary policy stance, closely monitoring domestic and external conditions before deciding on the timing of further rate cuts. Moon Ji-young, Arirang News."

[Econ & Biz] U.S. tariffs impact on Korean cars, K-beauty products, and Buldak noodles

2025/07/10 23:37

U.S. President Donald Trump has been announcing tariff rates on a daily basis now, whether it's reciprocal tariffs by country or by product, such as autos and steel. Now, South Korean officials say there is room for negotiation, but where do we go from here? We have our Kim Do-yeon in the studio with us for more. Good evening, Do-yeon. First, Do-yeon, walk us through the South Korea and U.S. trading relationship at this moment in time. Dami, it hasn't been looking good for South Korea. From January to April, the United States' imports hit an all-time high, but imports from South Korea actually declined, causing Korea's ranking among U.S. import partners to fall by three places from 7th last year to 10th, according to the Korea International Trade Association. Take a listen to an expert explaining the situation. "Even among the top 10 import partners, only China and Korea saw a decline. In Korea's case, it's notable that key Korean export items are increasingly being replaced by those from countries like Vietnam, Mexico, and Taiwan." We also have to keep in mind that many of the items that South Korea sells to the U.S. are subject to separate tariff rates. For example, we know autos will have 25-percent tariffs imposed under Section 232. Autos are more than 30-percent of South Korea's exports to the U.S. Chips and pharmaceuticals will also have their own tariff rates, and of course they are also some of South Korea's strengths in the export market. And, the White House has made it clear that these tariffs on specific items are not up for negotiation, saying South Korea is not likely to get its own lower tariff rates for these. 2. Let's focus on autos because we have the number now. 25-percent could be big, and we saw Hyundai Motor Group expanding production in the U.S. to avoid this. How is South Korea faring? Now, in terms of competition. A 25-percent tariff is applied to all items, so the playing field is still level against major competitors like Japan. Autos and auto parts are the number one export items to the U.S. for Korea and Japan. But, Mexico is a competitor that has an advantage over South Korea. Take a listen. "We should pay particular attention to Mexico. In the case of automobiles and auto parts, Mexico benefits from lower tariff rates under the USMCA, which puts Korea at a relative disadvantage in terms of price competitiveness. Moreover, Mexico's share of the U.S. import market for automobiles and parts has been expanding rapidly in recent years." And in terms of pricing competition, currency is also something to look into. And that is why the U.S. has been monitoring the dollar exchange rate closely as it comes up with the tariff rates. First, take a listen to how this works. "Let's say a 10% tariff is imposed, but at the same time, the exchange rate rises by 10%. In that case, the price doesn't become 10% higher — even with the tariff, thanks to the weaker currency, it effectively stays at one dollar. That's why a weaker currency neutralizes the impact of tariffs. So we end up comparing how much the yen has weakened versus how much the won has weakened." Now, that is why South Korea and Japan are likely to enjoy better tariff rates than China. While the won and yen are decided according to market trends, the Chinese yuan is not really decided in that way. 3. Right now let's go back to the 25 percent of course it's open to negotiation, but if autos, chips, and pharmaceuticals are getting their own tariff rates, what should South Korea be concerned about? Dami, there are two items that come to mind for this. K-beauty products and ramyeon. These two items have been on the rise when it comes to exports to the U.S. In fact, South Korea ranks first in cosmetics exports to the U.S., and as we all know Buldak noodles has been some sort of a phenomenon in the U.S. Now, let's focus on the beauty products first. Many of the items popular in the U.S. are indie brands that are sold on Amazon. Of course, these are subject to the reciprocal tariffs. There are some that produce locally in the U.S., such as the biggest Korean OEM and ODM cosmetic companies, but that's a small portion. Also, big cosmetic brands are looking for ways to start local production. "In particular, major Korean cosmetics companies like AmorePacific and LG don't have local manufacturing facilities in the U.S. right now, so they're considering options like acquiring existing plants through M&A, since building new factories on-site isn't feasible in the immediate term." On top of this, consumers are smart. There have been trends of people hoarding Korean sunblock before the tariff hit to survive the summer in the U.S. Now, as for the ramyeon industry the two biggest players are facing different fates. Nongshim, the maker of Shin Ramyeon, localized production in the U.S. for all its supplies. Samyang the maker of Buldak exports all from South Korea so the company is closely monitoring the negotiation process. Do-yeon, thanks for coming in tonight.

S. Korea keeps key rate steady at 2.5% in amid rising household debts

2025/07/10 19:49

We start with the Bank of Korea's decision to keep its rate unchanged at 2-point-5 percent amid a host of concerns both at home and abroad. Our correspondent Moon Ji-young reports. As widely expected, South Korea's central bank has held its benchmark interest rate steady at two-point-five percent. The Bank of Korea announced the decision on Thursday following the fifth Monetary Policy Committee meeting of the year, taking a break from a rate-cutting cycle after a cut of 25 basis points in May. "The domestic economy is expected to experience continued low growth for some time, while inflation remains on a stable trajectory, and there is considerable uncertainty related to trade negotiations. However, given the significant rise in capital area housing prices and household debt, coupled with the need to assess recent debt measures, it was deemed appropriate to maintain the current policy rate" Rhee also highlighted that it is necessary to cool expectations for a rate cut to prevent a rapid increase in housing prices in the greater Seoul area and to better manage household debt. According to one expert, housing prices have been rising, especially in the main capital area. " the rising inflation in apartment price, especially in the Seoul Gangnam area, it, which has been showing more than 10% year-over-year of our rate of increase and that is, I think almost the highest in almost 20 years except for 2017 and 2018." In response, the government last month implemented stricter mortgage regulations, capping mortgage loans for home purchases in the capital region and suspending home-backed loans for multi-homeowners. Notably, the rate-freeze decision was unanimous. However, four out of six board members voiced the need for further rate cuts in the next three months, factoring in tariff negotiations. Regarding the future rate outlook, an expert said: "Though not yet disbursed, supplementary budget funds are expected to make an impact in August. This increases the likelihood of a rate cut at the August meeting." Conversely, the other two members advocated for maintaining the rate, citing the record-high 2-percentage-point key rate gap that currently exists between South Korea and the U.S. The central bank predicts consumption to gradually recover, driven by the implementation of the supplementary budget as well as improving economic sentiment thanks to eased political uncertainty. Governor Rhee said he will take into consideration the effects of the extra budget once fully implemented in August. Meanwhile, U.S. tariff impositions pose great uncertainty on export prospects. The central bank emphasized that the outcomes of trade talks, especially regarding reciprocal tariffs on South Korea and specific items like semiconductors, will critically shape the country's export and growth paths. "The Bank of Korea said it will maintain its accommodative monetary policy stance, closely monitoring domestic and external conditions before deciding on the timing of further rate cuts. Moon Ji-young, Arirang News."

Korea braces for impact from U.S. tariffs as companies face different fates

2025/07/10 19:37

Right and with regard to the potential risks from Mr. Trump's tariff campaign my colleague Kim Do-yeon takes a look at their broader implications on Korean export items ranging from cars to chips and even ramyeon. 25 percent — that's the tariff rate set to take effect August 1st on South Korean imports into the U.S as of now. But Korea's exports largely consist of goods like automobiles, which already face a 25 percent tariff regardless of origin. So, how does this stack up against competitors like Japan and Germany? According to the Korea International Trade Association, over 30 percent of exports to the U.S. from both Korea and Japan are cars. Experts say a uniform tariff means little changes in the playing field between these countries. The bigger concern? Mexico. "Mexico benefits from lower rates under the USMCA when it comes to cars and auto parts, giving it a price edge over Korea." And with similar tariffs set to hit other Korean exports like semiconductors and pharmaceuticals, exchange rates become critical. "If the Korean won weakens against the dollar by 10 percent, it effectively offsets a 10 percent tariff. That means U.S. prices don't rise, and their trade deficit doesn't shrink." As for reciprocal tariffs, some Korean strongholds like K-beauty products and ramyeon are also in the crosshairs. K-beauty tops U.S. imports by country, pushing Korean firms to consider local production. "Companies like Amore and LG don't have factories in the U.S. yet, so they're exploring M&As to quickly establish local plants." Meanwhile, ramyeon tells a different story. Nongshim's Shin Ramyeon is made in the U.S., dodging tariffs. But Samyang's Buldak, still fully exported from Korea, will likely see higher prices. Kim Do-yeon, Arirang News.

Bitcoin hits new all-time high

2025/07/10 19:34

The world's largest cryptocurrency by market capitalization Bitcoin hit a new high on Wednesday. According to U.S.-based virtual currency exchange Coinbase the price of a single Bitcoin was trading at 1-hundred-12-thousand-55 U.S. dollars at around 4 PM Eastern Standard Time up over three percent from 24 hours prior. This marks the first time this cryptocurrency surpassed the 1-hundred-12-thousand mark.

KOSPI again breaks record high, closing at 3,183.23 on Thursday

2025/07/10 19:34

The South Korean stock market continued to rally on this Thursday driven by foreign investors. The benchmark KOSPI closed above the 3-thousand-1-hundred-80 mark breaking its previous record for the year set a day earlier. According to market analysts Thursday's closing also marks the highest in nearly four years. The tech-heavy KOSDAQ also gained almost one percent from its previous session ending just under 800.

Bitcoin hits new all-time high

2025/07/10 13:33

The world's largest cryptocurrency by market cap, Bitcoin, hit a new all-time high on Wednesday. According to U.S.-based virtual currency exchange Coinbase, the price of a single Bitcoin was trading at 112-thousand-55 U.S. dollars at 3.55 PM Eastern Standard Time, up over three percent from 24 hours prior. It marks the first time the cryptocurrency surpassed the 112-thousand mark, shattering the previous high of 111-thousand-900 dollars set on May 22nd.