News

OECD's latest economic outlook projects 'softening' in growth with big changes in trade policies

2025/03/18 10:00

The OECD has yet again signaled a slowdown in South Korea's growth prospects, citing trade tensions and geopolitical uncertainties. Our Moon Hye-ryeon reports. "Steering Through Uncertainty" is what the Organisation for Economic Cooperation and Development is calling the current global economic situation, forecasting a gradual slowdown in global economic growth over the next three years. Its interim economic outlook, published on Monday, anticipates that global economic growth will moderate, projecting figures of 3-point-1 percent for 2025 and 3 percent for 2026. Notably, the growth forecast for this year has been revised downwards by point-two percentage points compared to the previous projection given in December last year. The OECD highlights that while the global economy has remained "resilient," recent economic activity indicators suggest a softening of global growth prospects. Significant changes in trade policies were outlined as a critical concern – as the new Trump administration rolls out sweeping tariffs – warning that these shifts could impede economic growth and contribute to rising inflation. The organization also noted that inflationary pressures persist across numerous nations. Regional variations in economic performance are expected. In the United States, growth is projected to slow due to the implementation of increased tariffs, with forecasts of 2-point-2 percent this year, while China's economy is expected to maintain relatively robust growth, with forecasts of 4-point-8 percent in 2025. However, Canada and Mexico are projected to be severely negatively impacted by the new U.S. tariffs. As for the South Korean economy, it is projected to grow at a subdued pace of 1-point-5 percent this year, and 2-point-2 percent next year. The 2025 South Korea growth projection has also been revised downwards, reflecting the general trend of reduced growth forecasts among major economies, and falls in line with forecasts from other major institutions. The Bank of Korea adjusted its forecast for domestic economic growth this year also to 1-point-5 percent back in February, while the Korea Development Institute revised its forecast to 1-point-6 percent. Going forward, the OECD's policy recommendations advise central banks to navigate potential increases in trade costs and has called for international cooperation to address trade concerns, structural reforms to promote competition, and support for growth in productivity through the integration of artificial intelligence technologies. Moon Hye-ryeon, Arirang News.

OECD's latest economic outlook projects 'softening' in growth with big changes in trade policies

2025/03/17 20:00

The OECD signals a slowdown in the global growth prospects, citing trade tensions and geopolitical uncertainties. The global economic outlook has been dragged down to a little over 3-percent for this year. Our Moon Hye-ryeon has the details. "Steering Through Uncertainty" is what the Organisation for Economic Cooperation and Development is calling the current global economic situation, forecasting a gradual slowdown in global economic growth over the next three years. Its interim economic outlook, published on Monday, anticipates that global economic growth will moderate, projecting figures of 3-point-1 percent for 2025 and 3 percent for 2026. Notably, the growth forecast for this year has been revised downwards by point-two percentage points compared to the previous projection given in December last year. The OECD highlights that while the global economy has remained "resilient," recent economic activity indicators suggest a softening of global growth prospects. Significant changes in trade policies were outlined as a critical concern – as the new Trump administration rolls out sweeping tariffs – warning that these shifts could impede economic growth and contribute to rising inflation. The organization also noted that inflationary pressures persist across numerous nations. Regional variations in economic performance are expected. In the United States, growth is projected to slow due to the implementation of increased tariffs, with forecasts of 2-point-2 percent this year, while China's economy is expected to maintain relatively robust growth, with forecasts of 4-point-8 percent in 2025. However, Canada and Mexico are projected to be severely negatively impacted by the new U.S. tariffs. As for the South Korean economy, it is projected to grow at a subdued pace of 1-point-5 percent this year, and 2-point-2 percent next year. The 2025 South Korea growth projection has also been revised downwards, reflecting the general trend of reduced growth forecasts among major economies, and falls in line with forecasts from other major institutions. The Bank of Korea adjusted its forecast for domestic economic growth this year also to 1-point-5 percent back in February, while the Korea Development Institute revised its forecast to 1-point-6 percent. Going forward, the OECD's policy recommendations advise central banks to navigate potential increases in trade costs and has called for international cooperation to address trade concerns, structural reforms to promote competition, and support for growth in productivity through the integration of artificial intelligence technologies. Moon Hye-ryeon, Arirang News.

High US egg prices lead to smuggling from neighboring countries

2025/03/17 10:00

The United States has been experiencing a significant surge in egg prices, with the average cost reaching 5 U.S. dollars 90 cents per dozen in February. While the price hike is primarily due to a severe avian influenza outbreak, some consumers are attempting to source cheaper eggs from neighboring countries, such as Mexico, where prices average under 2 dollars per dozen. However, U.S. Customs and Border Protection has reported a 36% increase in egg smuggling incidents this fiscal year. Meanwhile, the U.S. has turned to several European countries, including Denmark, for egg imports to curb soaring prices.

U.S. steel and aluminum tariffs: what they mean for South Korea

2025/03/15 12:00

A major trade shift has hit steel and aluminum industries around the world with the Trump administration's new tariffs enacted earlier this week. Joining me in the studio to discuss is our trade correspondent, Moon Hye-ryeon. Welcome, Hye-ryeon. Thank you for having me. So Hye-ryeon, could you walk us through what the new tariffs are and what countries are subject to levies? The new tariffs that rolled out on Wednesday are hitting all steel and aluminum exports to the U.S. with the rate levied at 25 percent. Up until now, the Trump administration's tariffs were targeted at specific countries – Canada, Mexico and China. But these sweeping tariffs on steel and aluminum apply to countries around the world, including South Korea. Previously, such exports from South Korea to the U.S. were duty-free but capped at 2-point-6-3 million tons under a quota system. What impact is this tariff expected to have on the steel and aluminum industries here in South Korea? Now that all shipments will face the tariffs without a quota, this poses both risks and opportunities. As tariffs now apply to top exporters that had formerly enjoyed tariff and quota-free exports to the U.S., South Korea --the fourth largest supplier to the U.S. --may find new openings in the U.S. market. Still, the risks are significant, with intense competition such as cheaper steel products from Southeast Asia, as well as the inclusion of steel and aluminum-derived products – such as bolts, nuts, and springs – under the new tariff scheme. These products are primarily manufactured by small and medium-sized businesses, which have fewer resources to absorb the impact, making them especially vulnerable to financial losses. Shinjin Fasteners is one such company that produces nuts and bolts, with 35 percent of its sales dependent on exports to the U.S. and Europe. "Developing new products to stay competitive isn't easy, especially when it comes to sourcing materials. It's not like there's a set supply from the start --you have to create value and generate demand through product development." Another company, GJ Aluminum, faces the challenges of diversifying its exports. "We're trying to focus more on Europe and Southeast Asia, but the challenge is that our facilities have primarily been set up for the U.S. market and each of these new regions has very different requirements and characteristics." How has South Korea's government responded to these concerns? The government, for its part, has been ramping up efforts to counter these impacts. Acting President Choi Sang-mok outlined measures on Thursday to support such SMEs – ordering ministries to prevent market imbalances from surplus steel as well as designating a task force with the Korea Trade-Investment Promotion Agency to assist companies in navigating the new trade landscape. Meanwhile, the Ministry of Startups and SMEs and the Ministry of Trade, Industry and Energy have each convened meetings with industry insiders this week in order to gauge market reactions and needs. "It looks to be around 1800 domestic firms that are currently exporting to the U.S. We want to move quickly with a survey to get a clearer picture of the expected impact and what kind of targeted support these businesses will need." The Trade Ministry pledged to support exporting firms with a total of 61-point-1 billion Korean won – roughly 42 million U.S. dollars – in export vouchers. This initiative allows SMEs to access services essential for overseas market expansion, including legal consulting and trade certifications. With the recent rise in global trade uncertainties, the government has increased the export voucher budget by nine percent compared to last year. And how is Seoul planning to move forward in the days to come? Moving forward, the government is planning to announce a detailed and comprehensive response strategy sometime this month. During a meeting with industry leaders on Thursday, the Industry Minister highlighted plans to strengthen trade defense mechanisms. "The government is toughening up its trade defenses to crack down on unfair trade practices and boosting the resources of our trade commission to dig into these issues. We also plan to strengthen monitoring of unfair imports." There's also aggressive negotiations with the U.S. with the country's Minister for Trade landing in Washington on Friday for high-level talks. "If we think of this like a test, they must have some kind of grading rubric, right? We need to figure out what that rubric is. Then we need to quickly fix anything we're getting wrong, and we need to convince them of the things that we can argue against." With trade negotiations ongoing, officials stress that both short-term financial aid and long-term structural adjustments will be crucial for the survival and competitiveness of Korean firms in the global market. Right, thanks for the wrap-up, Hye-ryeon. Thanks for having me.

Gov't highlights 'downside risks' to S. Korea's economy for fourth straight month

2025/03/14 20:00

Meanwhile uncertainties over domestic politics and U.S. tariffs continue to weigh heavily on the Korean economy. Our Lee Soo-jin has the latest economic assessment. South Korea's economy is facing growing pressure as domestic demand remains weak and global uncertainties worsen. That's according to the latest economic green book a monthly economic assessment report released by the Finance Ministry on Friday. This also marks the fourth consecutive month that the government stated that the economy faces "growing downside pressure" in its report,.. after first including the phrase in its December green book after the martial law declaration. "We began using the term "economic downward pressure" as uncertainties grew, which can be categorized into two types currently. The first is domestic uncertainty, leading to a decline in consumer sentiment. The second is trade uncertainty from Trump's policies." While the overall assessment was largely reminiscent of last month's, this month's report also highlighted that the growth in exports is slowing. The daily exports average came to 2-point-4 billion U.S. dollars in February, a nearly 6-percent drop compared to the previous year. " Because of the tariffs that are put down by the Trump administration as well as domestic political problems sparked by the Trump administration we're seeing growth in the US slowing down and that is affecting the global economy as well as Korean exports as well." Recovery in domestic demand also remains sluggish as consumption and investment slow. Retail sales, a key measure of consumer spending, in January, fell point-6 percent compared to the previous month as sales of both semi-durable goods and non-durable goods declined. As for retail sales in February, drops in sales at department stores and large supermarkets are expected to have a negative impact, while the rise in credit card transactions and increased auto sales are projected to act as positive factors. Investment also showed a sharp decline, as facility investment in January plunged more than 14 percent on-month, marking the biggest drop since October 2020, due to decreases in investments in machinery such as semiconductor manufacturing and transport equipment. To address ongoing concerns, the government plans to further strengthen support for local businesses affected by U.S. tariffs, and to mitigate trade uncertainties through measures that include establishing a dedicated financial support fund. Lee Soo-jin, Arirang News.

Acting President Choi calls for vigilance on financial volatility

2025/03/14 20:00

Acting President Choi Sang-mok has urged close cooperation among financial authorities to ensure market stability. During a related meeting on Friday, Choi highlighted the possibility of volatility in light of uncertainty over external factors, including the Trump administration's tariff campaign and its broader ripple effects. That being said, he also underscored the importance of a 24-hour monitoring system to track financial and foreign exchange markets to allow for a swift and coordinated response.

Gov't highlights 'downside risks' to S. Korea's economy for fourth straight month

2025/03/14 17:00

Meanwhile uncertainty over domestic politics and uncertainty over U.S. tariffs continue to weigh heavily on the Korean economy. Our correspondent Lee Soo-jin covers the Finance Ministry's latest economic assessment. South Korea's economy is facing growing pressure as domestic demand remains weak and global uncertainties worsen. That's according to the latest economic green book a monthly economic assessment report released by the Finance Ministry on Friday. This also marks the fourth consecutive month that the government stated that the economy faces "growing downside pressure" in its report,.. after first including the phrase in its December green book after the martial law declaration. "We began using the term "economic downward pressure" as uncertainties grew, which can be categorized into two types currently. The first is domestic uncertainty, leading to a decline in consumer sentiment. The second is trade uncertainty from Trump's policies." While the overall assessment was largely reminiscent of last month's, this month's report also highlighted that the growth in exports is slowing. The daily exports average came to 2-point-4 billion U.S. dollars in February, a nearly 6-percent drop compared to the previous year. " Because of the tariffs that are put down by the Trump administration as well as domestic political problems sparked by the Trump administration we're seeing growth in the US slowing down and that is affecting the global economy as well as Korean exports as well." Recovery in domestic demand also remains sluggish as consumption and investment slow. Retail sales, a key measure of consumer spending, in January, fell point-6 percent compared to the previous month as sales of both semi-durable goods and non-durable goods declined. As for retail sales in February, drops in sales at department stores and large supermarkets are expected to have a negative impact, while the rise in credit card transactions and increased auto sales are projected to act as positive factors. Investment also showed a sharp decline, as facility investment in January plunged more than 14 percent on-month, marking the biggest drop since October 2020, due to decreases in investments in machinery such as semiconductor manufacturing and transport equipment. To address ongoing concerns, the government plans to further strengthen support for local businesses affected by U.S. tariffs, and to mitigate trade uncertainties through measures that include establishing a dedicated financial support fund. Lee Soo-jin, Arirang News.

Acting President Choi calls for vigilance on financial volatility

2025/03/14 17:00

Also here on the local front. Acting President Choi Sang-mok has urged close cooperation among financial authorities to ensure market stability. During a related meeting earlier on this Friday Choi highlighted the possibility of volatility in light of uncertainty over external factors including the Trump administration's tariff campaign and its broader ripple effects. That being said he also underscored the importance of a 24-hour monitoring system to track financial and foreign exchange markets to allow for a swift and coordinated response.

Global spot gold price hits record high amid trade war concerns

2025/03/14 10:00

The global spot gold price set a new all-time high on Thursday as uncertainty lingers over U.S. President Donald Trump's trade policies. The April gold futures closing spot price on the New York Mercantile Exchange rose one-point-five percent from the previous day, to close at two-thousand-991-dollars-and-30 cents per ounce as investors sought safer assets. The spot gold price rose around 14 percent this year, following a 27-percent surge in 2024.

S. Korean gov't responds to U.S. steel and aluminum tariffs with support for domestic firms

2025/03/14 10:00

All hands are on deck to protect local Korean businesses from potential disruptions, amid growing uncertainty in global trade. From tightening market monitoring to handing out export vouchers, the government says it's working on a comprehensive response strategy. Moon Hye-ryeon reports. The South Korean government is ramping up efforts to counter the impact of the Trump administration's 25 percent tariffs on steel and aluminum imports, which took effect on Wednesday. Acting President Choi Sang-mok and Industry Minister Ahn Duk-geun outlined measures on Thursday to mitigate the impact on domestic industries – particularly small and medium-sized businesses. At an economic meeting, Choi ordered ministries to prevent market imbalances from surplus steel, and stressed the need for aggressive negotiations with Washington. To facilitate this, the Korea Trade-Investment Promotion Agency has designated a special task force to assist companies in navigating the new trade landscape. Meanwhile, the Ministry of Trade, Industry and Energy has pledged to support over 13-hundred exporting firms with a total of 61-point-1 billion Korean won – roughly 42 million U.S. dollars – in export vouchers. This initiative allows SMEs to access services essential for overseas market expansion, including legal consulting and trade certifications. With the recent rise in global trade uncertainties, the government has increased the export voucher budget by nine percent compared to last year. Minister Ahn also convened a meeting with steel industry leaders at the POSCO Center in Seoul, where he reaffirmed the government's commitment to countering protectionist trade measures and pledged to announce a detailed support plan for domestic steel firms within the month. He highlighted plans to strengthen trade defense mechanisms, such as stricter monitoring of unfair imports and anti-dumping measures, in response to concerns about increased market competition from lower-cost steel producers in Southeast Asia. Recognizing the urgency of the situation, he emphasized that the government is working on a comprehensive response strategy which includes diplomatic efforts through high-level talks with U.S. officials – with the country's Minister for Trade on a visit to Washington to do so. With trade negotiations ongoing, officials stress that both short-term financial aid and long-term structural adjustments will be crucial for the survival and competitiveness of Korean firms in the global market. Moon Hye-ryeon, Arirang News.

S. Korean gov't responds to U.S. steel and aluminum tariffs with support for domestic firms

2025/03/13 20:00

On the trade front. From tightening market monitoring to handing out export vouchers, all hands are on deck to protect local businesses from potential disruptions in light of growing uncertainties stemming from the U.S.' trade war. Moon Hye-ryeon reports. The South Korean government is ramping up efforts to counter the impact of the Trump administration's 25 percent tariffs on steel and aluminum imports, which took effect on Wednesday. Acting President Choi Sang-mok and Industry Minister Ahn Duk-geun outlined measures on Thursday to mitigate the impact on domestic industries – particularly small and medium-sized businesses. At an economic meeting, Choi ordered ministries to prevent market imbalances from surplus steel, and stressed the need for aggressive negotiations with Washington. To facilitate this, the Korea Trade-Investment Promotion Agency has designated a special task force to assist companies in navigating the new trade landscape. Meanwhile, the Ministry of Trade, Industry and Energy has pledged to support over 13-hundred exporting firms with a total of 61-point-1 billion Korean won – roughly 42 million U.S. dollars – in export vouchers. This initiative allows SMEs to access services essential for overseas market expansion, including legal consulting and trade certifications. With the recent rise in global trade uncertainties, the government has increased the export voucher budget by nine percent compared to last year. Minister Ahn also convened a meeting with steel industry leaders at the POSCO Center in Seoul, where he reaffirmed the government's commitment to countering protectionist trade measures and pledged to announce a detailed support plan for domestic steel firms within the month. He highlighted plans to strengthen trade defense mechanisms, such as stricter monitoring of unfair imports and anti-dumping measures, in response to concerns about increased market competition from lower-cost steel producers in Southeast Asia. Recognizing the urgency of the situation, he emphasized that the government is working on a comprehensive response strategy which includes diplomatic efforts through high-level talks with U.S. officials – with the country's Minister for Trade on a visit to Washington to do so. With trade negotiations ongoing, officials stress that both short-term financial aid and long-term structural adjustments will be crucial for the survival and competitiveness of Korean firms in the global market. Moon Hye-ryeon, Arirang News.

S. Korean gov't responds to U.S. steel and aluminum tariffs with support for domestic firms

2025/03/13 17:00

Preparations are well underway to protect Korean businesses big and small from potential disruptions in light of the 25-percent tariffs on steel and aluminium imports into the American market. Our correspondent Moon Hye-ryeon reports. The South Korean government is ramping up efforts to counter the impact of the Trump administration's 25 percent tariffs on steel and aluminum imports, which took effect on Wednesday. Acting President Choi Sang-mok and Industry Minister Ahn Duk-geun outlined measures on Thursday to mitigate the impact on domestic industries – particularly small and medium-sized businesses. At an economic meeting, Choi ordered ministries to prevent market imbalances from surplus steel, and stressed the need for aggressive negotiations with Washington. To facilitate this, the Korea Trade-Investment Promotion Agency has designated a special task force to assist companies in navigating the new trade landscape. Meanwhile, the Ministry of Trade, Industry and Energy has pledged to support over 13-hundred exporting firms with a total of 61-point-1 billion Korean won – roughly 42 million U.S. dollars – in export vouchers. This initiative allows SMEs to support services essential for overseas market expansion, including legal consulting and trade certifications. With the recent rise in global trade uncertainties, the government has increased the export voucher budget by nine percent compared to last year. Minister Ahn also convened a meeting with steel industry leaders at the POSCO Center in Seoul, where he reaffirmed the government's commitment to countering protectionist trade measures and pledged to announce a detailed support plan for domestic steel firms within the month. He highlighted plans to strengthen trade defense mechanisms, such as stricter monitoring of unfair imports and anti-dumping measures, in response to concerns about increased market competition from lower-cost steel producers in Southeast Asia. Recognizing the urgency of the situation, he emphasized that the government is working on a comprehensive response strategy which includes diplomatic efforts through high-level talks with U.S. officials – with the country's Minister for Trade on a visit to Washington to do so. With trade negotiations ongoing, officials stress that both short-term financial aid and long-term structural adjustments will be crucial for the survival and competitiveness of Korean firms in the global market. Moon Hye-ryeon, Arirang News.

S. Korean firms brace for impact with new U.S. steel and aluminum tariffs

2025/03/13 10:00

And Choi's interview came with anxieties here in the country that South Korean firms are also no exception from Trump's merciless tariff policies. Our Moon Hye-ryeon tells us more. With the Trump administration’s 25 percent tariffs on steel and aluminum imports kicking in starting Wednesday, South Korean firms are bracing for impact. Previously, exports were duty-free but capped at 2-point-6-3 million tons under a quota system. Now, the quota is gone, but all shipments will face the tariffs posing both risks and opportunities. As tariffs now apply to top exporters Canada, Mexico, and Brazil, South Korea the fourth largest supplier to the U.S. may find new openings in the U.S. market. Still, the risks are significant, with intense competition such as cheaper steel products from Southeast Asia, as well as the inclusion of steel and aluminum-derived products – such as bolts, nuts, and springs – under the new tariff scheme. These products are primarily manufactured by small and medium-sized businesses, which have fewer resources to absorb the impact, making them especially vulnerable to financial losses. At a conference on Wednesday led by the Ministry of SMEs and Startups, industry insiders spoke up about their concerns. Shinjin Fasteners is one such company that produces nuts and bolts, with 35 percent of its sales dependent on exports to the U.S. and Europe. "Developing new products to stay competitive isn't easy, especially when it comes to sourcing materials. It's not like there's a set supply from the start you have to create value and generate demand through product development." Another company, GJ Aluminum, discussed the challenges of diversifying its exports. "We're trying to focus more on Europe and Southeast Asia, but the challenge is that our facilities have primarily been set up for the U.S. market and each of these new regions has very different requirements and characteristics." In order to minimize the impact on domestic firms, the South Korean government is building a support system such as stabilization funds and 15 nationwide support centers, as well as gathering opinions. "It looks to be around 1800 domestic firms that are currently exporting to the U.S. We want to move quickly with a survey to get a clearer picture of the expected impact and what kind of targeted support these businesses will need." Following Industry Minister Ahn Duk-geun's visit to Washington to establish a communication channel with the Trump administration regarding tariffs, the country's Minister for Trade is also due to visit the U.S. to continue talks. Moon Hye-ryeon, Arirang News.

Employment in Feb. up by 136,000, construction sector sees decline for 10 consecutive months

2025/03/12 20:00

Fresh employment data for the month of February remained robust, but when taking a closer look, it wasn't the case for the employment of younger people, with the rate having recorded the sharpest decline in about 4 years. Moon Ji-young covers the latest findings. The number of people in employment grew by 136-thousand last month, marking two consecutive months of growth. However, the employment of young people remains sluggish. According to data released by Statistics Korea on Wednesday, the number of people employed last month increased by over 130-thousand compared to the same month the previous year, bringing the total to 28-point-1 million. In terms of individual sectors, the manufacturing sector has experienced eight consecutive months of decline since last July. The construction sector saw employment shrink for the tenth consecutive month compared to the previous year, primarily due to a downturn in the construction industry. However, the healthcare and social assistance, science and technology services, and ICT sectors all added jobs. Employment rose by point two percentage points for those aged between 15 to 64. However, the employment rate for those aged 15 to 29 recorded the sharpest decline since January 2021, dropping by one point seven percentage points to 44-point-3 percent. "The unemployment rate remained at 3-point-2 percent compared to last month. The number of unemployed individuals rose by 25-thousand to 940-thousand year-on-year." The number of people unemployed aged between 15 and 29 increased by five thousand, with the unemployment rate for this group recorded at 7 percent. The number of people choosing not to work aged between 15 and 29 was recorded at 504-thousand, surpassing the 500-thousand mark for the first time since statistics began being collected in 2003. At a ministerial economic meeting on Wednesday, the government pledged to improve labor market conditions through a first quarter livelihood and economic support plan. It also vowed to create high-value-added jobs in emerging industries, including AI, and to enhance working conditions for researchers in the semiconductor sector. Moon Ji-young, Arirang News.

S. Korean firms brace for impact with new U.S. steel and aluminum tariffs

2025/03/12 20:00

So what are the implications of U.S. import duties on steel and aluminium for South Korean businesses? Our Moon Hye-ryeon takes a look. With the Trump administration's 25 percent tariffs on steel and aluminum imports kicking in starting Wednesday, South Korean firms are bracing for impact. Previously, exports were duty-free but capped at 2-point-6-3 million tons under a quota system. Now, the quota is gone, but all shipments will face the tariffs posing both risks and opportunities. As tariffs now apply to top exporters Canada, Mexico, and Brazil, South Korea the fourth largest supplier to the U.S. may find new openings in the U.S. market. Still, the risks are significant, with intense competition such as cheaper steel products from Southeast Asia, as well as the inclusion of steel and aluminum-derived products – such as bolts, nuts, and springs – under the new tariff scheme. These products are primarily manufactured by small and medium-sized businesses, which have fewer resources to absorb the impact, making them especially vulnerable to financial losses. At a conference on Wednesday led by the Ministry of SMEs and Startups, industry insiders spoke up about their concerns. Shinjin Fasteners is one such company that produces nuts and bolts, with 35 percent of its sales dependent on exports to the U.S. and Europe. "Developing new products to stay competitive isn't easy, especially when it comes to sourcing materials. It's not like there's a set supply from the start you have to create value and generate demand through product development." Another company, GJ Aluminum, discussed the challenges of diversifying its exports. "We're trying to focus more on Europe and Southeast Asia, but the challenge is that our facilities have primarily been set up for the U.S. market and each of these new regions has very different requirements and characteristics." In order to minimize the impact on domestic firms, the South Korean government is building a support system such as stabilization funds and 15 nationwide support centers, as well as gathering opinions. "It looks to be around 1800 domestic firms that are currently exporting to the U.S. We want to move quickly with a survey to get a clearer picture of the expected impact and what kind of targeted support these businesses will need." Following Industry Minister Ahn Duk-geun's visit to Washington to establish a communication channel with the Trump administration regarding tariffs, the country's Minister for Trade is also due to visit the U.S. to continue talks. Moon Hye-ryeon, Arirang News.

Employment in Feb. up by 136,000, construction sector sees decline for 10 consecutive months

2025/03/12 17:00

Fresh employment data shared by Statistics Korea show one-hundred-36-thousand jobs were added on year in February BUT employers in construction and manufacturing industries remained reluctant to make new hires. Our Moon JI-YOUNG covers the latest findings. The number of people in employment grew by 136-thousand last month, marking two consecutive months of growth. However, the employment of young people remains sluggish. According to data released by Statistics Korea on Wednesday, the number of people employed last month increased by over 130-thousand compared to the same month the previous year, bringing the total to 28-point-1 million. In terms of individual sectors, the manufacturing sector has experienced eight consecutive months of decline since last July. The construction sector saw employment shrink for the tenth consecutive month compared to the previous year, primarily due to a downturn in the construction industry. However, the healthcare and social assistance, science and technology services, and ICT sectors all added jobs. Employment rose by point two percentage points for those aged between 15 to 64. However, the employment rate for those aged 15 to 29 recorded the sharpest decline since January 2021, dropping by one point seven percentage points to 44-point-3 percent. "The unemployment rate remained at 3-point-2 percent compared to last month. The number of unemployed individuals rose by 25-thousand to 940-thousand year-on-year." The number of people unemployed aged between 15 and 29 increased by five thousand, with the unemployment rate for this group recorded at 7 percent. The number of people choosing not to work aged between 15 and 29 was recorded at 504-thousand, surpassing the 500-thousand mark for the first time since statistics began being collected in 2003. At a ministerial economic meeting on Wednesday, the government pledged to improve labor market conditions through a first quarter livelihood and economic support plan. It also vowed to create high-value-added jobs in emerging industries, including AI, and to enhance working conditions for researchers in the semiconductor sector. Moon Ji-young, Arirang News.

S. Korean firms brace for impact with new U.S. steel and aluminum tariffs

2025/03/12 17:00

So what are the implications of U.S. import duties on steel and aluminium for South Korean businesses? Our correspondent Moon Hye-ryeon takes a look. With the Trump administration's 25 percent tariffs on steel and aluminum imports kicking in starting Wednesday, South Korean firms are bracing for impact. Previously, exports were duty-free but capped at 2-point-6-3 million tons under a quota system. Now, the quota is gone, but all shipments will face the tariffs --posing both risks and opportunities. As tariffs now apply to top exporters Canada, Mexico, and Brazil, South Korea --the fourth largest supplier to the U.S. --may find new openings in the U.S. market. Still, the risks are significant, with intense competition such as cheaper steel products from Southeast Asia, as well as the inclusion of steel and aluminum-derived products – such as bolts, nuts, and springs – under the new tariff scheme. These products are primarily manufactured by small and medium-sized businesses, which have fewer resources to absorb the impact, making them especially vulnerable to financial losses. At a conference on Wednesday led by the Ministry of SMEs and Startups, industry insiders spoke up about their concerns. Shinjin Fasteners is one such company that produces nuts and bolts, with 35 percent of its sales dependent on exports to the U.S. and Europe. "Developing new products to stay competitive isn't easy, especially when it comes to sourcing materials. It's not like there's a set supply from the start you have to create value and generate demand through product development." Another company, GJ Aluminum, discussed the challenges of diversifying its exports. "We're trying to focus more on Europe and Southeast Asia, but the challenge is that our facilities have primarily been set up for the U.S. market and each of these new regions has very different requirements and characteristics." In order to minimize the impact on domestic firms, the South Korean government is building a support system such as stabilization funds and 15 nationwide support centers, as well as gathering opinions. "It looks to be around 1800 domestic firms that are currently exporting to the U.S. We want to move quickly with a survey to get a clearer picture of the expected impact and what kind of targeted support these businesses will need." Following Industry Minister Ahn Duk-geun's visit to Washington to establish a communication channel with the Trump administration regarding tariffs, the country's Minister for Trade is also due to visit the U.S. to continue talks. Moon Hye-ryeon, Arirang News.

South Korea sees improvement in labor market in February, but still faces youth job crisis

2025/03/12 10:00

Job growth in South Korea picked up last month, but the country still faces a youth job crisis. Statistics Korea said on Wednesday that employers added 136-thousand jobs in February, compared to the same month the previous year. This marks the second straight month that the country saw an improvement in the labor market. This was mainly driven by a surge in employment among those in their 60s or older. But hiring among those aged 15 to 29 was the lowest in four years. Manufacturing and construction jobs also continued on a downward trend.

S. Korean stock markets drop, influenced by decline in U.S. stock market

2025/03/11 20:00

The South Korean stock market closed lower on Tuesday, influenced by the sharp decline in the U.S. stock market. The benchmark KOSPI dropped 1-point-28-percent to close the day's session at some 2-thousand-5-hundred-37. Meanwhile, the tech-heavy KOSDAQ slightly fell zero-point-6-percent closing at over 7-hundred-21. The Korean won also weakened against the U.S. dollar with the exchange rate ending at around 1-thousand-4-hundred-58 won against the greenback.

Wall Street's big tech stocks plummet amid U.S. recession fears following Trump interview

2025/03/11 20:00

Wall Street tumbled on Monday as investors responded to concerns about a possible recession following remarks by U.S. President Donald Trump as he pursues his tariff policy. Moon Hye-ryeon reports. Wall Street saw an ocean of red as investors began selling their shares as soon as financial markets opened Monday amid heightened fears of a U.S. recession. The benchmark S&P 500 shed 2-point-7 percent, while the tech-heavy Nasdaq showed its biggest drop in more than two years as it slumped by 4 percent. Big tech stocks including, Apple and Microsoft, both members of the so-called "Magnificent 7," were at the center of the selling. Tesla plummeted by more than 15 percent, while chip giant Nvidia fell by more than five percent. Outside of stocks, bitcoin also slipped below the 80-thousand dollar mark – returning to levels before Trump's inauguration. Comments made by U.S. President Donald Trump in an interview with Fox News on Sunday, when asked about whether he expects a recession this year, stoked market concerns. "There is a period of transition because what we're doing is very big, we're bringing wealth back to America. That's a big thing. And there are always periods of – it takes a little time." Experts say that the risk of recession is something that Washington is viewing as a necessary evil for the greater good and they say that is reflected in Trump's blasé response to recession fears. "These are things that they're willing to, they're willing to accept for that longer term, more self-reliant, stronger position for the U.S." And this was supported by the White House on Monday, as its economic adviser Kevin Hassett pushed back on talks of a recession while calling a potential contraction a "very temporary phenomenon." He backed Trump's tariffs on Canada, Mexico, and China – claiming the measures would bring jobs and manufacturing back to the U.S. This comes amid heightened uncertainty around the Trump administration's on-again off-again tariff policies, with levies on Mexico and Canada pushed back yet again to April 2nd for goods under the free trade agreement between the U.S. and the two neighboring countries. With the U.S. set to impose another wave of tariffs on steel and aluminum starting Wednesday, eyes are on how markets will respond. Moon Hye-ryeon, Arirang News.