News

Tariffs take toll on South Korea; KOSPI falls below 2,300 for first time in 17 months

2025/04/09 20:00

Korea's benchmark KOSPI fell below the 23-hundred mark on Wednesday in the wake of the major U.S. tariffs that went into effect. Markets elsewhere also took a hit. Bae Eun-ji has the details. South Korea's benchmark KOSPI has dipped below the 2,300 points, for the first time in almost a year and half. The KOSPI index closed at 2-thousand-293-point-7 on Wednesday, down 1-point-7-4 percent from the day before. The sharp decline comes after it already lost more than 5 percent in a single day on Monday. Over the course of three days, the benchmark index has lost 139-point-7 trillion Korean won in market value, which is more than 94 billion dollars. The country's tech-heavy KOSDAQ also slid more than 2-percent, to finish at 643-point-3-9. The local currency also fell,.. with the won-dollar rate briefly declining to its lowest since the global financial crisis more than 16 years ago. The Korean won dropped to 1,484 per dollar on Wednesday, the lowest since March 2009. And it wasn't just South Korea that saw sharp declines on Wednesday. In neighboring countries, Japan's Nikkei 225 lost almost 4 percent, while Taiwan's benchmark stock index also shed nearly 5-point-8 percent. Meanwhile, U.S. stocks also continued to drop amid tariff fears. The S&P 500 fell sharply on Tuesday, to close below 5-thousand points for the first time in almost a year. It has now lost 5-point-8-3 trillion dollars in value, for its steepest four days of losses since the index was created in the 1950s. Apple shares have fallen more than 20 percent since last week's tariff announcement, wiping out 770 billion dollars in market cap over the past four days. This was mainly because Apple is considered as one of the companies most exposed to the trade war, due to its heavy reliance on China clearly showing that the current uncertainty around tariffs is overwhelming. Bae Eun-ji, Arirang News.

ADB projects S. Korea's 2025 economic growth at 1.5%, down 0.5% from December forecast

2025/04/09 17:00

The South Korean economy is projected to grow 1-point-5 percent this year. This is according to the Asian Development Bank in its latest projection which is lower than the two-percent growth forecast made back in December. The bank cited a host of internal and external factors as reasons behind its downward revision. Domestically high interest rates household debt and political uncertainty were underscored as risk factors while internationally uncertainty over global demand weighed on the bank's outlook for South Korea. Pundits meanwhile believe a further cut in growth forecast may be possible as this recent report by the bank did NOT take into account U.S. tariffs on Korean exports.

Tariffs fear rocks local markets, won-dollar exchange rate surpassing 1,487 won at one point

2025/04/09 17:00

Local financial markets were quick to respond to the start of U.S. tariffs. The benchmark KOSPI closed at 2-thousand-2-hundred-93-point-7 on this Wednesday down 1-point-7 percent from its previous session. This is the first time in 17 months that the KOSPI has dropped below the 2-thousand-300 level. Also on this Wednesday the Korean currency weakened further against the U.S. dollar trading at 1-thousand-4-hundred-84-point-1 won per greenback the highest close since the global financial crisis in March 2009. At one point during trade today the foreign exchange rate touched 1-thousand-4-hundred-87 won against the U.S. dollar.

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

2025/04/09 17:00

Meanwhile the Korean labor market is holding steady with employment expanding yet again in March growing by almost 200-thousand on year BUT that expansion remains uneven. Our 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.

S. Korea announces US$ 1.3 bil. support package for auto industry amid U.S. tariff pressures

2025/04/09 20:00

Also here at home. The government has framed out a support package for South Korea's auto industry as it seeks to ease the impact of U.S. tariffs on car imports that kicked in on April 3rd and on car parts to go into effect by May 3rd. Shin Se-byuck has details. South Korea will funnel an additional 2 trillion won, or 1-point-3 billion U.S. dollars, into the auto and parts industry amid pressure from the 25 percent tariff imposed by the Trump administration. "We'll provide 2 trillion won in special policy financing for affected firms and offer low-interest loans and supporting corporate bond issuance worth around 1 trillion won in cooperation with major companies and financial institutions." The announcement was made during an economy-related ministers' meeting on Wednesday, which addressed responses to shifting trade conditions, including U.S. tariffs and global supply chain changes. As a result, policy financing for the auto sector will increase from 13 trillion won to 15 trillion won,.. worth around 10-point-1 billion dollars this year. This came as the U.S. is a key market for Korea's auto industry, accounting for 34-point-7 billion dollars, or nearly half of the country's total auto exports which was worth 70-point-8 billion dollars last year. With Washington's 25 percent tariffs in place, Korea's auto exports to the U.S. are projected to drop by nearly 19 percent this year. One expert says the financial package may serve as a short-term buffer, but a different approach is needed for a long-term solution. "To fundamentally address the issue, the government needs to focus on boosting productivity, developing new technologies, and easing labor-management tensions." Aside from the aid package, the government will also extend its EV subsidy program, tied to manufacturer discounts to boost domestic sales,.. from the first half of the year through to the end of 2025. It will also support efforts to tap into new markets, particularly in the Global South, as part of its push to diversify auto exports. Plans include the early implementation of free trade agreements with countries including the UAE and Ecuador, and the resumption of FTA talks with Mexico to help open up new export destinations. The government is also accelerating efforts to diversify export markets, focusing on key industries most vulnerable to trade disruptions. It plans to inject over 40 million U.S. dollars worth of support for overseas operations of small and mid-sized firms, while expanding R&D funding to boost technological competitiveness. Meanwhile, Finance Minister Choi Sang-mok said the government will soon unveil 6-point-7 billion dollars worth of supplementary budget to boost industrial competitiveness and tackle global trade shifts, calling for swift parliamentary support. Shin Se-byuck, Arirang News.

Korean government bonds' inclusion in the 'WGBI advanced group' delayed

2025/04/09 10:00

South Korea's inclusion in the World Government Bond Index, which was originally scheduled for November, has been delayed to April next year. That means the benefits of being included in the WGBI, including reduction in government bond procurement costs, will also be delayed. While some pundits say the delay reflects investors' concerns about the political instability in the country, the government said it's due to Japan's request for an improvement in the investment environment, and nothing to do with the political situation. The South Korean government projects at least 56 billion dollars would flow into the country's national bond market once it's included in the WGBI.

S. Korea sees three consecutive months of job growth; decline in construction and manufacturing

2025/04/09 10:00

South Korea added nearly 200,000 jobs in March compared to the previous year, marking the third consecutive month of job growth. According to Statistics Korea on Wednesday the health and social welfare sector gains, followed by the public administration, defense, and social security sector, as well as the finance sector. However, construction jobs fell by 185,000 year on year, while manufacturing jobs declined by 112,000. By age group, individuals aged 60 and older experienced a year-on-year surge in employment, whereas those aged 15 to 29 saw a decline.

S. Korea announces US$ 1.3 bil. support package for auto industry amid U.S. tariff pressures

2025/04/09 10:00

South Korea will funnel an additional 2 trillion won, or 1-point-3 billion U.S. dollars, into the auto and parts industry amid pressure from the 25% tariff imposed by the Trump administration. The announcement came during an economy-related ministers' meeting on Wednesday, which addressed responses to shifting trade conditions, including U.S. tariffs and global supply chain changes. Last year, U.S.-bound vehicle exports totaled 34-point-7 billion dollars, accounting for nearly half of Korea's total auto exports. The government is also speeding up efforts to diversify export markets. It plans to inject over 40 million U.S. dollars worth of support for overseas operations of small and mid-sized firms, while expanding R&D funding to boost technological competitiveness.

Stock

2025/04/08 20:00

2025. 4. 8. KOREAN STOCK MARKET KOSPI : 2,334.23 ▲6.03 +0.26% KOSDAQ : 658.45 ▲7.15 +1.10% KOSPI200 : 310.03 ▲0.43 +0.14% ASIAN STOCK MARKET NIKKEI225 : 33,012.58 ▲1,876.00 +6.03% HANG SENG : 20,127.68 ▲299.38 +1.51% SHANGHAI : 3,145.55 ▲48.97 +1.58% WALL STREET (April 7) DOW JONES : 37,965.60 ▼349.26 -0.91% NASDAQ : 15,603.26 ▲15.47 +0.10% S&P500 : 5,062.25 ▼11.83 -0.23% EXCHANGE RATE USD : 1,473.20 (+5.40) JPY : 998.68 (-9.53) CNY : 200.59 (+0.12) EUR : 1,616.76 (+1.81)

S. Korea logged current account surplus for 22nd straight month in February

2025/04/08 20:00

For the twenty-second month in a row, Korea's current account remained in the black with a surplus of over 7-billion dollars in February. Lee Soo-jin covers the latest findings. South Korea's current account stayed in the black for the 22nd month in a row in February. According to data from the Bank of Korea on Tuesday, the country logged a near 7-point-2 billion U.S. dollar current account surplus in the second month of the year. This also marks a sharp increase from January's surplus , when there were fewer working days on account of the Lunar New Year holiday. It comes as the goods balance, which tracks exports and imports of products and accounts for the largest portion of the current account, recorded an 8-point-2 billion dollar surplus , also marking a significant increase from the previous month. This extends the surplus streak for the goods balance to 23 consecutive months. Exports rose 3-point-6 percent compared to the previous year on strong demand for computers, computers, pharmaceuticals, cars, and IT equipment. But outbound shipments of chips dropped compared to the previous year, a decline recorded for the first time since October 2023. "Exports of lower-value DDR4 memory chips fell slightly in February due to price drops, but picked up again in March despite competition from China. Still, it's something we'll need to watch closely." The size of the country's service balance once again remained in the red, with the deficit deepening compared to the previous month. This was mostly due to the larger shortfall in the intellectual property account from increased payments by domestic firms to overseas companies for R&D-related royalty fees. When asked about when the impact of U.S. President Donald Trump's tariffs will be felt, the same official said the current account surplus will likely continue through March, with effects starting to show in April, but that while sectors like autos and auto parts will be affected, the impact is expected to be gradual, not immediate. Lee Soo-jin, Arirang News.

Won-to-dollar exchange rate hits 1,473.2 won, highest since global financial crisis

2025/04/08 20:00

As U.S. tariffs rattle global financial markets, the South Korean currency lost substantial ground against the U.S. dollar, weakening to one-thousand-4-hundred-73 won at one point during trade on Tuesday afternoon. This is the won's weakest level against the greenback since the global financial crisis. Accordingly, at an emergency meeting of the country's top economic officials convened by Finance Minister Choi Sang-mok , authorities acknowledged the vulnerability of the local financial market to external risk factors and agreed to remain vigilant in anticipation of further fluctuations.

Samsung posts Q1 operating profit of US$ 4.5 billion

2025/04/08 20:00

In the corporate arena. Samsung Electronics posted what pundits are calling a "resilient" first-quarter profit on the back of strong semiconductor and smartphone demand. Our Shin Se-byuck has more. Samsung Electronics, in its earnings guidance on Tuesday, estimated a first quarter operating profit of 6-point-6 trillion Korean won or roughly 4-point-5 billion U.S. dollars. The figure beats market expectations of around 3-point-5 billion dollars, thanks to strong sales of the tech giant's latest flagship smartphones, despite being down point-1-5 percent from a year earlier. The market had projected weaker earnings due to delayed shipments of its fifth-gen HBM chips and falling memory prices, but brisk sales of the Galaxy S25, launched in February, pushed results well above forecasts. Stronger-than-expected DRAM shipments also contributed to the upbeat performance. Revenue rose nearly 10 percent on-year to 79 trillion won or around 54 billion dollars, close to the all-time high of 79-point-1 trillion won posted in the third quarter of last year. Samsung did not disclose earnings by business division this time. However, market watchers estimate the MX division, which oversees smartphones, posted an operating profit of over 2-point-7 billion dollars. The Device Solutions division, responsible for semiconductors, is projected to have logged an operating profit of around 681 million dollars. With memory chip prices on the rise, expectations are growing for Samsung's performance in the coming quarters. But an expert warns that uncertainties remain. "Because of the tariffs and because of the uncertainty and because of the slowing down of the American economy, I think performances for the second quarter would not be as dramatic as the first quarter and possibly are significantly lower than the first quarter." The company's final earnings report will be released later this month. Shin Se-byuck, Arirang News.

Samsung posts Q1 operating profit of US$ 4.5 billion

2025/04/08 17:00

In the corporate arena. Samsung Electronics posted what pundits are calling a "RESILIENT" first-quarter profit on the back of strong semiconductor and smartphone demand. Our Shin Se-byuck has more. Samsung Electronics, in its earnings guidance on Tuesday, estimated a first quarter operating profit of 6-point-6 trillion Korean won or roughly 4-point-5 billion U.S. dollars. The figure beats market expectations of around 3-point-5 billion dollars, thanks to strong sales of the tech giant's latest flagship smartphones, despite being down point-1-5 percent from a year earlier. The market had projected weaker earnings due to delayed shipments of its fifth-gen HBM chips and falling memory prices, but brisk sales of the Galaxy S25, launched in February, pushed results well above forecasts. Stronger-than-expected DRAM shipments also contributed to the upbeat performance. Revenue rose nearly 10 percent on-year to 79 trillion won or around 54 billion dollars, close to the all-time high of 79-point-1 trillion won posted in the third quarter of last year. Samsung did not disclose earnings by business division this time. However, market watchers estimate the MX division, which oversees smartphones, posted an operating profit of over 2-point-7 billion dollars. The Device Solutions division, responsible for semiconductors, is projected to have logged an operating profit of around 681 million dollars. With memory chip prices on the rise, expectations are growing for Samsung's performance in the coming quarters. But an expert warns that uncertainties remain. "Because of the tariffs and because of the uncertainty and because of the slowing down of the American economy, I think performances for the second quarter would not be as dramatic as the first quarter and possibly are significantly lower than the first quarter." The company's final earnings report will be released later this month. Shin Se-byuck, Arirang News.

Won-to-dollar exchange rate hits 1,473.2 won, highest since global financial crisis

2025/04/08 17:00

And as U.S. tariffs rattle global financial markets the South Korean currency lost substantial ground against the U.S. dollar weakening to one-thousand-4-hundred-73 won at one point during trade on this Tuesday afternoon. Now this is the won's weakest level against the greenback since the global financial crisis. Accordingly at an emergency meeting of the country's top economic officials convened by Finance Minister Choi Sang-mok authorities acknowledged the vulnerability of the local financial market to external risk factors and agreed to remain vigilant in anticipation of further fluctuations.

S. Korea logged current account surplus for 22nd straight month in February

2025/04/08 17:00

On a bright note now. For the twenty-second month in a row Korea's current account remained in the black with a surplus of over 7-point-1 billion U.S. dollars in February. Our correspondent Lee Soo-jin covers the latest findings. South Korea's current account stayed in the black for the 22nd month in a row in February. According to data from the Bank of Korea on Tuesday, the country logged a near 7-point-2 billion U.S. dollar current account surplus in the second month of the year. This also marks a sharp increase from January's surplus , when there were fewer working days on account of the Lunar New Year holiday. It comes as the goods balance, which tracks exports and imports of products and accounts for the largest portion of the current account, recorded an 8-point-2 billion dollar surplus , also marking a significant increase from the previous month. This extends the surplus streak for the goods balance to 23 consecutive months. Exports rose 3-point-6 percent compared to the previous year on strong demand for computers, computers, pharmaceuticals, cars, and IT equipment. But outbound shipments of chips dropped compared to the previous year, a decline recorded for the first time since October 2023. "Exports of lower-value DDR4 memory chips fell slightly in February due to price drops, but picked up again in March despite competition from China. Still, it's something we'll need to watch closely." The size of the country's service balance once again remained in the red, with the deficit deepening compared to the previous month. This was mostly due to the larger shortfall in the intellectual property account from increased payments by domestic firms to overseas companies for R&D-related royalty fees. When asked about when the impact of U.S. President Donald Trump's tariffs will be felt, the same official said the current account surplus will likely continue through March, with effects starting to show in April, but that while sectors like autos and auto parts will be affected, the impact is expected to be gradual, not immediate. Lee Soo-jin, Arirang News.

Samsung posts Q1 operating profit of US$ 4.5 bil.

2025/04/08 10:00

Samsung Electronics, in its earnings guidance on Tuesday, estimated a first quarter operating profit of 6-point-6 trillion Korean won or roughly 4-point-5 billion U.S. dollars. The figure beats market expectations of around 3-point-5 billion dollars, thanks to strong sales of the tech giant's latest flagship smartphones, despite being down point-1-5 percent from a year earlier. The market had projected weaker earnings due to delayed shipments of its fifth-gen HBM chips and falling memory prices, but brisk sales of the Galaxy S25, launched in February, pushed results well above forecasts. Revenue rose nearly 10 percent on-year to 79 trillion won or around 54 billion dollars, close to the all-time high of 79-point-1 trillion won posted in the third quarter of last year.

Seoul pledges to stabilize supply chains, support SMEs amid trade uncertainties

2025/04/08 10:00

With rising trade tensions, South Korean authorities are rolling out measures to support local businesses. During an economic ministerial meeting on Tuesday, Finance Minister Choi Sang-mok pointed out that concerns are rising about the impact on domestic industries of the higher-than-expected U.S. reciprocal tariffs. As a result, Seoul will be allocating approximately 3 to 4 trillion Korean won over 2 billion U.S. dollars in a supplementary budget next week to stabilize supply chains and provide support for small and medium sized businesses. In another meeting with finance chiefs, Choi called for close monitoring of the volatile stock market in response to trade uncertainties.

S. Korea logs current account surplus for 22nd straight month in Feb.

2025/04/08 10:00

South Korea's current account stayed in the black for the 22nd month in a row in February. According to data from the Bank of Korea on Tuesday, the country logged a 7-point-2 billion U.S. dollar current account surplus in the second month of the year. This marks a sharp increase from January's surplus thanks to the easing of disruptions caused by fewer working days during the Lunar New Year holiday the month before. And it comes as exports rose 3-point-6 percent compared to the previous year on strong demand for computers, pharmaceuticals, cars, and IT equipment.

Massive sell-off in S. Korea stock market; sidecar triggered by KOSPI 200 futures index

2025/04/07 20:00

Major U.S. tariffs are sending shock waves across global stock markets. Today, Korean stocks were in freefall, down over 5-percent. Trading had to be halted in the morning to ward off panic selling. Lee Soo-jin reports. U.S. President Donald Trump's tariff announcements have triggered massive sell-offs across South Korea's stock market. The Korea Exchange at 9:12 AM on Monday, activated a sell-side sidecar for the first time in eight months, when the KOSPI 200 futures index fell 5-point-19 percent to 312-point-05. A sidecar is triggered when the KOSPI 200 futures index rises or falls by 5 percent or more and stays there for at least one minute. On Monday, the sidecar was activated for five minutes. And stock indexes also took a hit amid mounting investor concerns over the impact of U.S. tariffs. Both the benchmark KOSPI and the tech-heavy KOSDAQ closed down more than five percent, the KOSPI down 5-point-57 percent to around 2-thousand-3-hundred-28, and the KOSDAQ 5-point-25 percent to 6-hundred-51. But one expert said decline of this size is likely a temporary phenomenon, which is why a circuit breaker --triggered when the KOSPI and KOSDAQ indexes fall by 8 percent or more --is unlikely to be activated. "Today's market decline was likely driven by last Friday's slump in the U.S. market and President Trump's hardline stance over the weekend, which led to a 3 to 4 percent drop in U.S. futures that triggered foreign investor sell-offs. As such, the downturn is unlikely to continue for long." The loss was led by foreign investors offloading shares as they reacted to sharp losses in U.S. markets. On Friday local time, Wall Street suffered sharp losses, with the broad-based S&P 500 closing down 6 percent, the tech-heavy Nasdaq 5-point-8 percent. And the Dow Jones fell around 5-point-5 percent. This marked the second straight day of major losses, with the S&P and Dow Jones both suffering the biggest one-day drops since June 2020 on Thursday. In the foreign exchange market on Monday, the Korean won weakened against the dollar, closing at around 1-thousand-467, down 33-point-7 won from the previous session after briefly topping 1-thousand-470 during intraday trading. The same expert said this reflects fears of a potential global economic downturn, noting that Korea's exchange rate with the dollar has surpassed the 1-thousand-400 won mark three times in the past, during the 1997 IMF crisis, the 2008 financial crisis, and the U.S. Fed's aggressive rate hikes in 2022. Lee Soo-jin, Arirang News.

Stock

2025/04/07 20:00

2025. 4. 7. KOREAN STOCK MARKET KOSPI : 2,328.20 ▼137.22 (-5.57%) KOSDAQ : 651.30 ▼36.09 (-5.25%) KOSPI200 : 309.60 ▼19.07 (-5.80%) ASIAN STOCK MARKET NIKKEI225 : 31,136.58 ▼2,644.00 -7.83% HANG SENG : 19,828.30 ▼3,021.51 -13.22% SHANGHAI : 3,096.58 ▼245.43 -7.34% WALL STREET (April 4) DOW JONES : 38,314.86 ▼2,231.07 -5.50% NASDAQ : 15,587.79 ▼962.81 -5.82% S&P500 : 5,074.08 ▼322.44 -5.97% EXCHANGE RATE USD : 1,467.80 (+33.70) JPY : 1,008.21 (+26.39) CNY : 200.47 (+2.65) EUR : 1,614.95 (+28.19)