News

S. Korean FM to meet U.S. Treasury chief next week for trade talks

2025/04/16 10:00

South Korean Finance Minister Choi Sang-mok is set to visit the U.S. next week for trade talks with Treasury Secretary Scott Bessent. According to Yonhap News Agency on Wednesday, Choi's trip comes in response to a meeting proposal from U.S. Treasury Secretary Scott Bessent. The report follows Bessent's interview with Bloomberg TV on Monday, where he said Washington would hold trade negotiations with South Korea next week. The Wall Street Journal reported earlier this week that the Trump administration is prioritizing negotiations with five countries, including South Korea and Japan.

Gov't proposes larger extra budget for disaster, trade response

2025/04/15 20:00

The Finance Ministry has proposed an extra budget of 12-trillion won or some 8-billion U.S. dollars. The proposal was made during a ministerial economic meeting on Tuesday during which Finance Minister Choi Sang-mok said the government will submit what he called the "necessary" supplementary budget to the National Assembly next week. The budget, up 1-point-4 billion U.S. dollars from the initial proposal, includes 2-billion dollars for disaster response, 3-billion dollars for trade and AI, and 3-billion dollars for small businesses and vulnerable groups.

S. Korea's auto exports to U.S. drop in first quarter, even before reciprocal tariffs take effect

2025/04/15 20:00

Korea's overall auto exports rose on-year during the first quarter of 2025, but shipments to the U.S. market declined over 11-percent ahead of U.S. tariffs. Park Jun-han explains. South Korea's automobile exports in March were valued at 6.24 billion dollars — the second-highest figure for the month on record. Data released by the Ministry of Trade, Industry, and Energy on Tuesday showed that the earnings from automobile shipments posted year-on-year growth in both February and March, marking two consecutive months of gains. Year-on-year auto exports to Asia and the Middle East in the first quarter saw significant increases of 37% ( 1) and 22.7% ( 2), respectively. However, preliminary data shows that shipments to the United States fell by 11.2% ( 3) over the same period compared to last year. The auto industry is concerned that the decline in exports to the U.S. will lead to a fall in South Korea's overall exports, as the 25% auto tariff could further reduce demand. "We expect that exports to the U.S. will likely continue to decline this year, as prices rise due to tariffs and demand in the U.S. market drops significantly. With demand from the U.S. weakening, South Korean car companies need to look for alternative markets to help make up for the shortfall." As South Korea's automobile industry is directly under the influence of the United States' tariff policies, the trade ministry laid out a policy support framework for Korean companies last Wednesday, after automobile tariffs separate from the so-called reciprocal tariffs went into effect. The ministry said that it plans to swiftly implement necessary support measures and respond flexibly by closely monitoring both the extent of the damage and the progress of negotiations with the United States. Park Jun-han, Arirang News.

S. Korea's credit rating maintained at "AA" by S&P Global with stable outlook

2025/04/15 20:00

South Korea has had its credit ratings maintained at "AA" with a stable outlook by S&P Global, a leading financial services firm. S&P notes that Seoul's strong policies support its credit rating, adding that last December's short-lived martial law imposition hasn't significantly affected the country's credit rating. But it projects the country's GDP growth to slow to 1-point-2-percent this year due to weaker global trade, before rebounding to 2-percent next year.

S. Korea's finance ministry to increase support for semiconductor industry

2025/04/15 20:00

Finance Minister Choi Sang-mok also announced a plan to increase its support for the semiconductor industry from 26-trillion won to 33-trillion won, or over 22-billion U.S. dollars. The plan aims at strengthening the global competitiveness of key sectors amid rising uncertainty from U.S.-led trade tensions. As part of the plan, the government will introduce new investment subsidies for small and mid-sized firms in advanced materials, components, and equipment.

Gov't proposes larger extra budget for disaster, trade response

2025/04/15 17:00

The Finance Ministry has proposed an extra budget of TWELVE TRILLION won or some EIGHT BILLION U.S. dollars. The proposal was made during a ministerial economic meeting earlier on this Tuesday during which Finance Minister Choi Sang-mok said the government will submit what he called the "necessary" supplementary budget to the National Assembly next week. The budget up 1-point-4 billion U.S. dollars from the initial proposal includes 2 billion dollars for disaster response 3 billion dollars for trade and AI and 3 billion dollars for small businesses and vulnerable groups.

S. Korea's auto exports to U.S. drop in first quarter, even before tariffs take effect

2025/04/15 17:00

Findings show Korea's overall auto exports rose on year during the first quarter of 2025 but shipments to the U.S. market declined over 11 percent despite the absence of U.S. tariffs prompting much concern about future trade performance in the presence of such import duties. Park Jun-han explains. South Korea's automobile exports in March were valued at 6.24 billion dollars — the second-highest figure for the month on record. Data released by the Ministry of Trade, Industry, and Energy on Tuesday showed that the earnings from automobile shipments posted year-on-year growth in both February and March, marking two consecutive months of gains. Year-on-year auto exports to Asia and the Middle East in the first quarter saw significant increases of 37% ( 1) and 22.7% ( 2), respectively. However, preliminary data shows that shipments to the United States fell by 11.2% ( 3) over the same period compared to last year. The auto industry is concerned that the decline in exports to the U.S. will lead to a fall in South Korea's overall exports, as the 25% auto tariff could further reduce demand. "We expect that exports to the U.S. will likely continue to decline this year, as prices rise due to tariffs and demand in the U.S. market drops significantly. With demand from the U.S. weakening, South Korean car companies need to look for alternative markets to help make up for the shortfall." As South Korea's automobile industry is directly under the influence of the United States' tariff policies, the trade ministry laid out a policy support framework for Korean companies last Wednesday, after the tariffs went into effect. The ministry said that it plans to swiftly implement necessary support measures and respond flexibly by closely monitoring both the extent of the damage and the progress of negotiations with the United States. Park Jun-han, Arirang News.

Employment for late 20s in S. Korea sees biggest drop in 12 years

2025/04/14 17:00

The number of employed Koreans in their late 20s has retreated to its lowest level in 12 years. Data shared by Statistics Korea on this Monday show some 2-point-4 million Koreans between the ages of 25 and 29 were employed in the first quarter of this year DOWN 98-thousand on year. The agency is linking the drop to declines in manufacturing and construction jobs. Moreover this latest drop is not only the deepest since 2013 but also continues a nine-quarter run of on-year employment slumps for people.. in this age group.

Trump clarifies there's no full "tariff exception" on electronics from China

2025/04/14 17:00

U.S. tariff exemptions on electronic devices are temporary in nature and a separate set of tariffs will be in place for semiconductors and smartphones in the near future. Lee Seung-jae has our top story. U.S. President Donald Trump and his key trade officials on Sunday made it clear that his administration's newly announced exemptions for reciprocal tariffs on electronic products would be partially or completely reversed in the coming weeks. After a technical guidance issued late Friday, Washington issued an exemption on select electronics, such as smartphones, laptops, personal computers, servers, and semiconductor equipment. Not only does this ease the burden on Samsung Electronics and Apple, it also means a possible exemption from some of the levies on Chinese imports. However,.. Trump took to his social media page on Sunday to clarify, saying tariffs would still be imposed on Chinese goods, specifically the existing 20 percent fentanyl tariffs. Trump also stressed that the U.S. administration is taking a look at semiconductors and the "WHOLE ELECTRONICS SUPPLY CHAIN" in upcoming National Security Tariff investigations. According to U.S. Commerce Secretary Howard Lutnick, while there may be some tariff exemptions on select electronics now, a separate tariff on semiconductors is coming. "So what he's doing is he's saying they're exempt from the reciprocal tariffs, but they're included in the semiconductor tariffs, which are coming in probably a month or two. So these are coming soon." Speaking to CNN on Sunday, White House National Economic Council director Kevin Hassett said that items subject to Section 232 of the Trade Expansion Act have always been excluded from the reciprocal tariffs, and a separate investigation will be conducted to determine the necessary measures to protect the United States. He added that the tariff investigation into semiconductors has to do with broader concerns of U.S. dependence on Chinese-made imports. Hassett said that there is a "very uncomfortable amount of Chinese input" in U.S. weapons systems, stressing the importance of Section 232 of the Act. Lee Seung-jae, Arirang News.

Gov't to provide US$ 6 bil. to support export companies

2025/04/11 20:00

The government is poised to provide over nine-trillion won, about six-billion U.S. dollars in financial support for export businesses. The plan was announced during a meeting led by Finance Minister Choi Sang-mok on Friday. The package includes loans at lower rates and crucial funding for operations. A dedicated task force will also be set up to address changes in supply chains.

Gov't to provide US$ 6 bil. to support export companies

2025/04/11 17:00

The government is poised to provide over nine trillion won about six billion U.S. dollars in financial support for export businesses. The plan was announced during a meeting led by Finance Minister Choi Sang-mok on this Friday. The package includes loans at lower rates and crucial funding for operations. A dedicated task force will also be set up to address changes in supply chains.

Recent economic Green Book points to heightened uncertainties and sluggish domestic demand as downside pressures

2025/04/11 17:00

The Finance Ministry's April assessment of the Korean economy affirms the persistent presence of risk factors including lackluster domestic consumption and U.S. import duties. Park Jun-han covers the latest findings. The finance ministry's latest economic report points to a sluggish recovery in domestic demand and growing global uncertainty from Washington's tariffs as key downside risks. This assessment comes in the ministry's Green Book, a monthly report that outlines the trends in the country's economy. According to the ministry, while the impeachment of former President Yoon Suk Yeol has reduced some internal uncertainty, external risks are growing due to the U.S. tariffs. "The 90-day moratorium has eased some of the pressure on our economy and companies, but the 10% tariff rate is still in effect. And then steel, automobiles, those are also subject to item-specific tariffs, so there is downside pressure." In the Green Book, there were some signs indicating a slowdown in domestic spending. The country's Consumer Sentiment Index dropped from February's 95.2 points to 93.4 in March. Also, preliminary GDP data shows that construction investment in the fourth quarter of 2024 fell 4.5 percent compared to the previous quarter. Year-on-year, construction investment was down 6.5 percent. The ministry vowed full support to combat economic uncertainties and downside pressures. It said it will continue to promote a strengthened economic recovery, including providing support for jobs, construction, and small businesses. At the same time, the ministry will make every effort to respond to trade risks, such as supporting Korean companies affected by the imposition of U.S. tariffs, and expediting the supplementary budget to strengthen industrial competitiveness. Park Jun-han, Arirang News

U.S. consumer prices see first monthly decline in nearly 5 years

2025/04/11 10:00

Also in the United States, consumer prices fell by 0.1% in March, marking the first monthly decline in nearly five years. The decrease was primarily driven by a 6.3% drop in gasoline prices and reduced costs for used vehicles, airline fares, and hotel accommodations. The annual inflation rate eased to 2.4%, its lowest since September 2021, while core inflation, excluding food and energy, rose by just 0.1%. However, economists caution that this relief may be temporary, with new tariffs expected to exert upward pressure on prices in the coming months.

Wall Street sees sell-off one day after major gains due to U.S.-China trade conflict

2025/04/11 10:00

The New York Stock Exchange plunged on Thursday, just a day after Trump announced a 90-day pause for reciprocal tariffs that drove massive gains. The Dow Jones Industrial Average fell two-point-five percent from the previous trading session to close under the 40-thousand mark. The S&P 500 fell more than 3 percent, while the tech-heavy Nasdaq also dropped more than 4 percent from the previous trading session. Wall Street saw major sell-offs due to recession concerns amid the escalating U.S.-China trade conflict.

Where is S. Korea's economy headed post-Yoon's impeachment ruling?

2025/04/10 20:00

Welcome to Within The Frame, where we bring the most pressing issues across the globe into focus. I'm Kim Mok-yeon. South Korea is navigating a complex moment for its economy and markets. Following the impeachment ruling on former President Yoon Suk-yeol, the nation saw a brief dip in the dollar-won exchange rate and a slight easing of market volatility, reflecting hopes that domestic uncertainty might begin to fade. But that window of calm has been narrow. A fresh wave of global trade tensions — sparked by the Trump administration's announcement of 34% reciprocal tariffs on China — has reignited concerns across global markets. Beijing has responded with matching tariffs, and the Korean won has now climbed back above 1,460 against the dollar, with some analysts warning of further upside pressure. All of this comes just ahead of a snap presidential election scheduled within 60 days, adding another layer of potential volatility. To help us understand what these overlapping events mean for Korea's economy, markets, and policy direction, we're joined by Lee Yoon-soo, professor of Economics at Sogang University in the studio. Welcome. Also joining us online is Min Joo Kang, senior economist at ING. Thank you for joining us. (LEE) 1. Let's start with Prof.Lee. President Yoon's impeachment ruling was seen as the resolution of one of the biggest recent domestic political uncertainties. In your view, how has this affected the Korean economy so far? (KANG) 2. Now to Ms. Kang. Looking back at the impeachments of Roh Moo-hyun and Park Geun-hye, what financial market trends typically followed such political events? In what ways does the current situation differ — especially considering today's global economic environment? (LEE) 3. Following the ruling, the won-dollar exchange rate briefly dipped to 1,430, suggesting a moment of relief. But it quickly surged back above 1,470 due to rising global trade tensions. What does this sharp reversal tell us about the relative impact of domestic political stabilization versus external economic shocks? (KANG) 4. Now that the 1,470 level has been breached, with markets eyeing the psychological threshold of 1,500, how do you assess the risk of the won crossing that line? What short-term triggers should we be paying attention to? (LEE) 5. In response to recent volatility, Korea's top economic policymakers convened emergency F4 meetings. For those unfamiliar with the process, could you walk us through the key points of their action plan? (KANG) 6. As an economic expert, do you think these measures were adequate to restore market confidence — or is there a need for more proactive and sustained steps in the near term? (KANG) 7. One of the biggest external factors now is the return of a Trump administration and its aggressive tariff policy. With reciprocal 34% tariffs already imposed on China, with more being threatened, how might this new round of trade conflict affect Korea's export-dependent economy? (LEE) 8. Given this rising uncertainty, Prof.Lee, what advice would you offer to institutional investors or Korean exporters looking to hedge or manage exposure to tariff risks? (LEE) 9. Looking ahead, a snap presidential election will take place within the next 60 days. How much additional uncertainty could this introduce into the markets? What are investors most keen to see in terms of the next administration's economic policy direction? (KANG) 10. Considering all of these developments — domestic political shifts, global trade tensions, currency volatility — what's your overall outlook for Korea's economic trajectory in the second half of the year? Are we heading into a more stable phase, or should we be bracing for more turbulence?

90-Day Tariff Freeze: How Korea should weigh its trade approach

2025/04/10 17:00

The country-specific U.S. tariffs are on hold for now but the baseline 10-percent tariff on all foreign-origin goods as well as the 25-percent tariff on cars and steel imports into the American market remain in place. So what have been the ripple effects of these tariffs on South Korea thus far? Our correspondent Lee Soo-jin takes a look. This is just one of over 100 tariff-related inquiries the Korea Trade-Investment Promotion Agency now receives daily, a sharp jump from just 20 before U.S. President Donald Trump's tariffs. But while the 90-day pause on reciprocal tariffs offers Korea temporary relief, existing duties remain a challenge. The 10-percent baseline tariff that went into effect on April 5th remains in place, and the 25-percent duties on items like automobiles and steel are not covered by the 90-day grace period. And starting May 3rd, a 25-percent tariff on auto parts will also go into effect. "Auto parts suppliers are facing significant disruption. Some sub-parts required for manufacturing are still being imported from Korea. So even if vehicle assembly happens locally, the impact of increased tariffs on imported car parts is still unavoidable." But as of now, markets are seeing a recovery. A buy-side sidecar was triggered Thursday morning for the first time in over eight months, as the KOSPI 200 futures jumped more than 5 percent from the previous session, just days after a sell-side sidecar was activated on Monday, also for the first time in eight months. A buy-side sidecar was also activated for the KOSDAQ during morning trade for the first time since August last year when the futures and the stock index each rose more than the 6 percent and 3 percent thresholds. The market rebound extended through the day, with the KOSPI and the KOSDAQ indexes both closing up at around 6 percent. And the 90-day pause provides Korea a chance to strengthen its trade strategy. "With the United States not only trade and tariff but also shipbuilding, energy investment in Alaska gas pipe and defense cost-sharing is expected to be discussed comprehensively." As one of the Trump administration's key energy priorities is fossil fuels, it has repeatedly urged Korea to join the Alaska LNG project. In response, South Korea's Foreign Ministry issued a research tender on Thursday to explore ways to expand U.S. oil and LNG imports. Shipbuilding, where Korea is a global leader, is also emerging as a key area of cooperation, following Trump's executive order to rebuild the U.S. shipbuilding industry, citing national security and competition with China. Lee Soo-jin, Arirang News.

Wall Street climbs on news of Trump's 90-day tariff pause

2025/04/10 17:00

As expected Wall Street rallied following news of a 90-day pause in U.S. tariffs on its trade partners. The Dow Jones Industrial Average on Wednesday surged 7-point-8 percent to close at 40-thousand-6-hundred-8-point-4. The tech-heavy Nasdaq soared over 12 percent to end its session at 17-thousand-1-hundred-24-point-9. Global crude prices also rose. On the New York Mercantile Exchange futures for May delivery for West Texas Intermediate gained over 4 percent while the June delivery for Brent Crude also jumped over 4 percent on the ICE Futures Exchange.

Wall Street climbs on news of Trump's 90-day tariff pause

2025/04/10 10:00

Wall Street reacted positively to the news of Trump's 90-day tariff pause. The Dow Jones Industrial Average on Wednesday rose 7-point-8-7 percent, or over 2-thousand-962 points, to close at 40-thousand-608-point-4-5. The tech-heavy Nasdaq soared over 12 percent, up over 1-thousand-857 points from the previous trading session, to close at 17-thousand-124-point-9-7. Global crude prices also rose on the news of the tariff pause. On the New York Mercantile Exchange, futures for May delivery for West Texas Intermediate rose more than 4 percent from the previous trading session, while the June delivery for Brent Crude also climbed over 4 percent on the ICE Futures Exchange.

S. Korea's stocks surge with tariff pause, buy-side sidecar activated for KOSPI 200 futures

2025/04/10 10:00

South Korea's stock market is surging, boosted by the pause in U.S. tariffs. As of 9:02 AM on Thursday, the KOSPI stood at 2-thousand-415-point-39, up more than five percent from the previous session, triggering a buy-side sidecar for the first time in more than eight months at 9:06 AM. A sidecar is activated when the KOSPI 200 futures index rises or falls by 5 percent or more and stays there for at least a minute. The tech-heavy KOSDAQ also showed a large jump of more than four percent.

Employment in Mar. up by 193,000; sharp decline in construction and manufacturing

2025/04/09 20:00

The Korean labor market is holding steady with employment expanding in March, growing by almost 200-thousand from a year ago, but that expansion remains uneven. Moon Ji-young explains. South Korea’s job market saw robust growth in March, but challenges persist, particularly in the construction and manufacturing sectors, along with youth employment. According to Statistics Korea’s employment report released on Wednesday, the number of employed people aged 15 or older reached almost 28-point-6 million in March, marking a year-on-year increase of 193-thousand. This gain marks the third consecutive month of growth. By industry, the health and social welfare sector led the job gains, followed by public administration, defense, and social security, as well as the finance field. However, construction saw the largest year-on-year drop in jobs since data collection began in 2013, marking a continuous decline for eleven consecutive months. The manufacturing sector also recorded its most significant decline since November 2020, reflecting a ninth straight month of falls in employment. Some experts forecast that manufacturing, the backbone of the domestic economy, could see a further decline in jobs this year, as export growth slows due to a potential trade war triggered by U.S. tariffs. "Due to the shock from tariffs, our product exports may decline, leading to a faster reduction in job opportunities. Since most of what we sell consists of manufactured goods, this could result in a reduction of decent jobs in the sector." By age group, employment for those aged 60 years and older primarily led the job growth, adding 365-thousand year-on-year. In contrast, the number of employed individuals aged 15 to 29 dropped by 206-thousand. The employment rate for young adults stood at 44.5 percent, marking the lowest monthly record for any March since 2021. With this latest data, Finance Minister Choi Sang-mok expressed concerns regarding sluggish job growth, particularly in export-driven industries such as manufacturing, during an economic officials' meeting on Wednesday. To address the volatility in the trade market, the government has committed to a supplementary budget of 10 trillion won, or roughly 6.7 billion dollars. Moon Ji-young, Arirang News.