News

KOREAN EXPORTS HIT RECORD HIGH FOR JUNE

2025/07/02 19:41

Welcome to Wednesday's edition of Press Perspective. It's July SECOND here in Seoul and I'm Min Sunhee. Today we touch upon the latest events on the economic front here in South Korea. For this I have Lee Ji-hoon with international news agency Reuters. Ji-hoon it's good to have you here. I also have Ruy Valdes with Spanish news agency EFE Spain. Ruy welcome back. Ji-hoon, let's start with the rally in the South Korean stock market in recent days and the reasons behind it. Ruy, staying with the momentum from the stock market. South Korea's consumer confidence soared in June. Again, what are the figures and the factors fueling them? And now, Ji-hoon, on the trade front, exports rebounded in the month of June. Do tell us more about this finding and the factors behind them. Ruy, the Trump administration's pause on reciprocal tariffs ends next week. First, how many bilateral deals has the U.S. been able to seal thus far? And second, what's the latest with regard to South Korea's tariff talks with the U.S.? Meanwhile, Ruy, on the domestic front, the Lee administration has highlighted the need for a second supplementary budget this year to bolster the economy and protect livelihoods. Do tell us a bit more about this budget. Ji-hoon, you recently covered the concerns raised by a BOK board member about financial stability. Could you tell us more? Ruy, what can you tell us about President Lee's pick for Finance and Economy Minister? All right.

Trump rules out tariff suspension period extension

2025/07/02 19:37

And the U.S. leader has reaffirmed his resolve against an extension in the pause on country-specific tariffs following his self-imposed deadline next week. Our Moon Hye-ryeon has more. With the suspension period on tariffs set to expire soon, U.S. President Donald Trump signaled that he has no plans to extend the deadline, and that new trade penalties for some countries may soon take effect. Speaking to reporters aboard Air Force One on Tuesday, he singled out Japan after taking to social media the day before to criticize Tokyo for refusing to import American rice despite facing a domestic shortage. "So what I'm going to do is I'll write them a letter and say, 'we thank you very much and we know you can't do the kind of things that we need and therefore you pay a 30%, 35% or whatever the numbers that we determine,' because we also have a very big trade deficit with Japan " On the other hand, he said a deal to reduce the 26 percent tariff rate for India to "much less" is on the table, after Indian officials extended a visit to the White House last week. U.S. Treasury Secretary Scott Bessent told Fox News prior to this statement that the two countries are close to making a deal that lowers levies for both parties. India is one of 57 named countries targeted by country-specific mutual tariffs announced back in April, before they were pushed back for a 90-day negotiation period. During that period, Washington has pushed for talks focused on tariff rates, trade imbalances, and non-tariff barriers. Only the UK has been able to negotiate a limited trade deal with the Trump administration so far, accepting a 10 percent U.S. tariff on certain items in exchange for special access to aircraft engines and British beef. Going forward, the Trump administration is reportedly planning meetings with its trade team to set tariff rates for individual countries as the July 9th deadline approaches. The U.S. Director of the National Economic Council revealed on Monday that the U.S. President will review tariff plans for each country, while Bessent warned that tariffs could remain high for countries that do not cooperate. Moon Hye-ryeon, Arirang News.

BOK expects extra budget to boost S. Korean economy by 0.2% points

2025/07/02 19:35

The Bank of Korea believes the government-proposed supplementary budget will boost South Korea's economic growth by 0-point-2 percentage point this year. Speaking at the European Central Bank Forum in Portugal on Tuesday Governor Rhee Chang-yong also revealed that the BOK remains in a rate-cutting cycle after lowering rates by one percentage point since last October. He nonetheless stressed that the timing and size of future rate cuts will take into account financial stability risks including rising household debt.

Ramyeon and seafood lead steepest inflation rate climb in 5 months

2025/07/02 19:35

On the economic front. Inflation here in Korea picked up pace in June rising at its fastest rate since the start of this year. Our correspondent Kim Do-yeon covers this rise in rate and the reasons behind it. Consumer prices in South Korea climbed back to the two-percent range in June marking the fastest pace in five months. According to the data released by Statistics Korea, consumer prices in June increased by 2-point-2 percent year-on-year. The jump comes after last month the on-year percentage dropped below 2 at 1-point-9. "Although the increase in livestock prices has slowed, the decline in agricultural products has narrowed, petroleum products have turned upward, and prices for processed foods and other items, excluding dining out, have risen further — resulting in a 2-point-2 percent year-on-year increase." Processed food prices, in fact, jumped four-point-six percent for the sharpest increase since late 2023. This means bread, coffee, and ham led the gains but one of the most popular processed foods for Korea, ramyeon also jumped. "Once a cheap source for a quick meal, ramyeon prices aren't what they used to be. On-year, prices have jumped 6.9% that's the highest in 21 months. The government explains that this is due to ingredient prices going up." "I think it's really expensive. I don't buy in bulk anymore, and I eat less of it." Seafood prices also saw a notable climb, up seven-point-four percent, with officials pointing to global warming and unstable marine conditions. Consumers feel the difference and need to take advantage of good opportunities. "We're a family of three, and we used to eat a lot of fish. It's too expensive for us now, but I'm here because I heard there's a sale." Meanwhile, oil prices edged up zero-point-three percent, due to the geopolitical tensions in the Middle East. The Finance said that given uncertainties such as weather conditions and volatility in global oil prices, it will make all-out efforts together with related ministries to stabilize consumer prices. In particular, to keep food prices in check, it plans to continue measures such as discounts on agricultural, livestock, and fisheries products, as well as applying quota tariffs on key food ingredients. Kim Do-yeon, Arirang News.

Processed food leads steepest inflation rate climb in 5 months

2025/07/02 11:34

Consumer prices in South Korea climbed back to the two percent range in June marking the fastest pace in five months. According to the data released by Statistics Korea, consumer prices in June increased by 2-point-2 percent year-on-year. This was led by processed food prices jumping four-point-six percent for the sharpest increase since late 2023. Bread, coffee, and ham led the gains while the price of ramyeon surged nearly seven percent. Seafood prices also saw a notable climb up seven-point-four percent with officials pointing to global warming and unstable marine conditions. Meanwhile, oil prices edged up zero-point-three percent reflecting geopolitical tensions in the Middle East.

Stock

2025/07/01 22:40

2025. 7. 1. KOREAN STOCK MARKET KOSPI : 3,089.65 ▲17.95 +0.58% KOSDAQ : 783.67 ▲2.17 +0.28% KOSPI200 : 416.26 ▲1.66 +0.40% ASIAN STOCK MARKET NIKKEI225 : 39,986.33 ▼501.06 -1.24% HANG SENG : CLOSED SHANGHAI : 3,457.75 ▲13.32 +0.39% WALL STREET (June 30) DOW JONES : 44,094.77 ▲275.50 +0.63% NASDAQ : 20,369.73 ▲96.27 +0.47% S&P500 : 6,204.95 ▲31.88 +0.52% EXCHANGE RATE USD : 1,355.90 (+5.90) JPY : 943.96 (+5.84) CNY : 189.33 (+0.77) EUR : 1,597.52 (+13.97)

S. Korea posts highest exports for June in history

2025/07/01 22:40

South Korea's exports made a rebound last month, in fact, posting the highest figures for any June in history, thanks to brisk chip and car shipments. Our Park Jun-han leads us off tonight. Exports in June reached an all-time high of 59-point-8 billion U.S. dollars, up 4-point-3 percent from a year earlier, according to data released on Tuesday by the Ministry of Trade, Industry and Energy. Imports rose 3-point-3 percent to 50-point-72 billion dollars, resulting in a trade surplus of 9-point-08 billion dollars. Among the country's 15 major export items, six showed growth. Notably, semiconductors fueled this, marking a historic 15 billion dollars in June — up 11-point-6 percent — and continuing a four-month upward trend. This helped overseas shipments of semiconductors reach 73-point-3 billion dollars for the first half of 2025, the highest-ever performance over that period. "Previously, market demand for semiconductors was driven by mobile devices, but it has now shifted to AI and data centers. Strong memory sales — particularly high-bandwidth memory — and a surge in AI data center investment are the fundamental drivers behind the recent growth in semiconductor exports." Automobile shipments also hit an all-time high for June at 6-point-3 billion dollars, marking a 2-point-3 percent increase from a year earlier. Robust deliveries were driven by high EU demand for electric vehicles, and a whopping 67-point-9 percent surge in used car exports to 670 million dollars. By region, June exports saw growth in seven of its nine major trading regions, excluding the United States and China. Although exports to the United States and China saw a slight decrease of point-5 percent and 2-point-7 percent , respectively, exports to regions such as the European Union and the Middle East saw a significant increase of over at least 14 percent. The economic expert stated that the drop in exports to the United States and China reflects a shift in the global trading order. "The drop in exports after Trump's tariff hikes is a major setback, especially since exports were expected to rise. South Korea exports intermediate goods to China, which China then ships as final products to the U.S., so tariffs on China hit us too. As existing markets shrink, we naturally look for new ones — leading to a shift in the trading order, with more exports heading outside the U.S. and China." In the meantime, Trade Minister Ahn Duk-geun said the government plans to respond proactively to the immediate challenges in the Korea-U.S. negotiations and will soon prepare export support measures — such as trade financing and the identification of alternative markets — to minimize the negative impact on industries. Park Jun-han, Arirang News.

S. Korea braces for U.S. tariffs with automakers exposed the most

2025/07/01 22:34

The record-high export figures from June are a relief for now, but chip and car exports the backbone of South Korea's economy may soon be challenged following the end of the Trump administration's tariffs grace period. So, how to brace for the potential impact? Our Kim Do-yeon reports. The stakes couldn't be higher, as South Korea's heavy dependence on exports — especially to the United States — leaves its core industries vulnerable. With a July 8th deadline fast approaching, Seoul is racing to secure a deal that shields its automakers and semiconductor producers from hefty new tariffs. "I believe Korea needs to emphasize that its economic growth leads to more factories and jobs being created in the United States, and use that to steer negotiations in a direction that benefits both countries." Recent moves by Hyundai Motor Group underscore that point, with the company pledging over 21 billion dollars in investments across the U.S. over the next three years. The move perhaps testifies to experts' claims that autos are the most exposed. Under Section 232 of the U.S. Trade Expansion Act, Washington currently slaps a 25 percent tariff on imported vehicles and auto parts — a duty both Korea and Japan have been pushing to reduce. "Among all the tariffs Korea faces from the U.S. right now, the most critical issue is the auto sector. If this isn't resolved, we're likely to see significant damage — not just for finished cars, but also for parts, steel and aluminum, since all these tariffs are heavily concentrated on automobiles." Without a breakthrough, Korea's automakers and a web of suppliers could suffer severe losses. Some experts suggest that ramping up local manufacturing in the U.S. may be the most immediate way to cushion the blow. "By using production facilities over there, we can effectively offset tariffs on parts as well. So at this point, I think expanding and maximizing manufacturing operations in the U.S., rather than producing everything domestically, is actually the best alternative we have." But they caution this could mean fewer jobs and contracts for Korea's own factories and parts makers. That's why experts say tariffs will ultimately need to be tackled at the negotiating table. They point out that South Korea's shipbuilding capacity could serve as leverage — while even adjustments to defense cost-sharing might come into play. Kim Do-yeon, Arirang News.

S. Korea posts highest exports for June in history

2025/07/01 19:41

We start on the trade front as findings for the month of June show exports hitting an all-time high for the month driven by cars and chips. Our correspondent Park Jun-han reports. Exports in June reached an all-time high of 59-point-8 billion U.S. dollars, up 4-point-3 percent from a year earlier, according to data released on Tuesday by the Ministry of Trade, Industry and Energy. Imports rose 3-point-3 percent to 50-point-72 billion dollars, resulting in a trade surplus of 9-point-08 billion dollars. Among the country's 15 major export items, six showed growth. Notably, semiconductors fueled this, marking a historic 15 billion dollars in June — up 11-point-6 percent — and continuing a four-month upward trend. This helped overseas shipments of semiconductors reach 73-point-3 billion dollars for the first half of 2025, the highest-ever performance over that period. "Previously, market demand for semiconductors was driven by mobile devices, but it has now shifted to AI and data centers. Strong memory sales — particularly high-bandwidth memory — and a surge in AI data center investment are the fundamental drivers behind the recent growth in semiconductor exports." Automobile shipments also hit an all-time high for June at 6-point-3 billion dollars, marking a 2-point-3 percent increase from a year earlier. Robust deliveries were driven by high EU demand for electric vehicles, and a whopping 67-point-9 percent surge in used car exports to 670 million dollars. By region, June exports saw growth in seven of its nine major trading regions, excluding the United States and China. Although exports to the United States and China saw a slight decrease of point-5 percent and 2-point-7 percent , respectively, exports to regions such as the European Union and the Middle East saw a significant increase of over at least 14 percent. The economic expert stated that the drop in exports to the United States and China reflects a shift in the global trading order. "The drop in exports after Trump's tariff hikes is a major setback, especially since exports were expected to rise. South Korea exports intermediate goods to China, which China then ships as final products to the U.S., so tariffs on China hit us too. As existing markets shrink, we naturally look for new ones — leading to a shift in the trading order, with more exports heading outside the U.S. and China." In the meantime, Trade Minister Ahn Duk-geun said the government plans to respond proactively to the immediate challenges in the Korea-U.S. negotiations and will soon prepare export support measures — such as trade financing and the identification of alternative markets — to minimize the negative impact on industries. Park Jun-han, Arirang News.

S&P 500, Nasdaq hit new all-time highs for 2nd straight day

2025/07/01 19:35

Wall Street rallied this past Monday bolstered by widespread belief that the Trump administration will reach tariff deals ahead of next week's deadline. The tech-heavy NASDAQ hit a new high after gaining over 96 points to close trade at 20-thousand-3-hundred-69-point-7. Similarly the S&P 500 reached a new record after rising over 31 points to end its session on Monday at above 6-thousand-2-hundred-4. The overall market optimism follows Canada's removal of a tax targeting American tech firms that had earlier prompted U.S. President Donald Trump to call off bilateral trade talks. Those talks are now set to resume.

S. Korea braces for U.S. tariffs with automakers exposed the most

2025/07/01 19:34

Now as mentioned earlier the deadline for country-specific U.S. tariffs is fast approaching. That being said my colleague Kim Do-yeon spoke to a number of scholars here for their thoughts on an effective South Korean trade strategy. Do take a listen. The stakes couldn't be higher, as South Korea's heavy dependence on exports — especially to the United States — leaves its core industries vulnerable. With a July 8th deadline fast approaching, Seoul is racing to secure a deal that shields its automakers and semiconductor producers from hefty new tariffs. "I believe Korea needs to emphasize that its economic growth leads to more factories and jobs being created in the United States, and use that to steer negotiations in a direction that benefits both countries." Recent moves by Hyundai Motor Group underscore that point, with the company pledging over 21 billion dollars in investments across the U.S. over the next three years. The move perhaps testifies to experts' claims that autos are the most exposed. Under Section 232 of the U.S. Trade Expansion Act, Washington currently slaps a 25 percent tariff on imported vehicles and auto parts — a duty both Korea and Japan have been pushing to reduce. "Among all the tariffs Korea faces from the U.S. right now, the most critical issue is the auto sector. If this isn't resolved, we're likely to see significant damage — not just for finished cars, but also for parts, steel and aluminum, since all these tariffs are heavily concentrated on automobiles." Without a breakthrough, Korea's automakers and a web of suppliers could suffer severe losses. Some experts suggest that ramping up local manufacturing in the U.S. may be the most immediate way to cushion the blow. "By using production facilities over there, we can effectively offset tariffs on parts as well. So at this point, I think expanding and maximizing manufacturing operations in the U.S., rather than producing everything domestically, is actually the best alternative we have." But they caution this could mean fewer jobs and contracts for Korea's own factories and parts makers. That's why experts say tariffs will ultimately need to be tackled at the negotiating table. They point out that South Korea's shipbuilding capacity could serve as leverage — while even adjustments to defense cost-sharing might come into play. Kim Do-yeon, Arirang News.

Trump to meet with trade team this week to set tariff rates: White House

2025/07/01 11:38

With the U.S. set to end its tariff pause next Wednesday, President Donald Trump is expected to hold meetings with his trade team this week to discuss pending deals and set country-specific rates. Our Kim Bo-kyoung tells us more. With the July 9th tariff pause deadline approaching, U.S. President Donald Trump is reportedly planning meetings with his trade team this week to set tariff rates for individual countries. This, according to White House press secretary Karoline Leavitt during a briefing on Monday. "He is going to set the rates for many of these countries if they don't come to the table to negotiate in good faith. And he is meeting with his trade team this week to do that." This echoes Director of the National Economic Council, Kevin Hassett, who said in an interview that there will be a marathon meeting as soon as the "One Big Beautiful Bill Act" passes before Independence Day on the Fourth of July. While saying Trump will review tariff plans one country at a time, he added that the number of deals in hand is in the double digits, with a framework for negotiations in place similar to what was used to strike a deal with the UK last month. Treasury Secretary Scott Bessent also warned countries to cooperate during an interview with Bloomberg TV. Though there are countries that are negotiating in good faith with the U.S., he said, they should be aware that the tariffs could spring back to April 2nd levels, if the deal does not get across the line. Warnings have also been directed at specific countries. Trump, in a post on Truth Social, said Washington would be sending Tokyo a letter, while threatening to impose higher tariffs on Japanese exports to the U.S. over Japan's unwillingness to buy American-grown rice despite a massive rice shortage. Specific details of what the letter might contain have not been disclosed. Kim Bo-kyoung, Arirang News.

S&P 500, Nasdaq hit new all-time highs for 2nd straight day

2025/07/01 11:33

Both the S&P 500 and the tech-heavy Nasdaq closed at new all-time highs on Monday, as hopes for trade deals and possible rate cuts eased investor uncertainty. The Nasdaq rose over 96 points, to close at 20-thousand-369-point-seven-three, while the S&P 500 rose over 31 points, to close above 6-thousand-204 on the day. Both indexes ended the quarter with double-digit gains, with the S&P 500 gaining over 10 percent, while the Nasdaq rose nearly 18 percent. Canada's recent withdrawal of its so-called "digital tax" on U.S. tech companies raised optimism about a possible trade deal between the U.S. and Canada. Both indexes had also reached all-time highs at the close of the previous session on Friday.

Stock

2025/06/30 22:41

2025. 6. 30. KOREAN STOCK MARKET KOSPI : 3,071.70 ▲15.76 +0.52% KOSDAQ : 781.50 ▼0.06 -0.01% KOSPI200 : 414.60 ▲1.88 +0.46% ASIAN STOCK MARKET NIKKEI225 : 40,487.39 ▲336.60 +0.84% HANG SENG : 24,072.28 ▼211.87 -0.87% SHANGHAI : 3,444.43 ▲20.20 +0.59% WALL STREET (June 27) DOW JONES : 43,819.27 ▲432.43 +1.00% NASDAQ : 20,273.46 ▲105.55 +0.52% S&P500 : 6,173.07 ▲32.05 +0.52% EXCHANGE RATE USD : 1,350.00 (-7.40) JPY : 938.12 (-2.33) CNY : 188.56 (-0.80) EUR : 1,583.55 (-4.81)

S. Korea may face 0.4% decline in real GDP if tariff effects are fully felt

2025/06/30 22:41

With about 10 days left until the Trump administration's tariff deadline comes to an end, the South Korean government on Moday hosted a public hearing to address concerns and seek Seoul's potential negotiation strategy. Our correspondent Park Jun-han was there. South Korea may face a 0.3 to 0.4 percent decline in real GDP if tariff effects are fully felt. This was mentioned during a public hearing held by the Ministry of Trade, Industry and Energy on Monday, based on a feasibility review conducted by the Korea Institute for International Economic Policy. "If all the tariffs imposed or planned by the Trump administration were to materialize, our projections estimated that real GDP growth could decline by approximately 0.3% to 0.4%." The hearing was held a day after trade ministry officials from the new Lee Jae Myung administration returned from high-level tariff negotiations in the United States last week. The talks involved six areas of trade between South Korea and the U.S., namely, balanced trade, non-tariff measures, economic security, digital trade, country of origin, and commercial considerations. People from various sectors, including agriculture, steel, automobiles and oil, gathered to express complaints and called for transparent disclosure of progress in the negotiations. A general manager from the Korea Iron and Steel Association raised concerns, saying that the industry is particularly worried about the possibility of major competitors securing better terms — and whether that could further hurt Korea's steel exports. Also, an official from the Korea Trade-Investment Promotion Agency, who appeared as a panelist to represent the voices of business leaders exporting to the U.S., urged the government to swiftly address the issue of uncertainty. "It's not just Korean companies; U.S. firms are also clearly concerned about the tariffs. I believe that shared concern can be used as a bargaining chip, and we should strategically approach the tariff talks through Korea–U.S. business cooperation channels." While the trade ministry expressed sympathy to industries affected by the tariffs, it explained that only limited information could be shared, as the potential harm of disclosing details of the negotiations outweighs the benefits. "If you look at global or domestic media, there's very little information on which countries specifically received what demands and how they responded to certain tariff-related issues. I believe this is due to concerns over transparency, as making the negotiations public could be detrimental to the national interest." Although the pace of negotiations is likely to pick up, it's still unclear when a deal will be reached — or what kind of tariffs might follow. With less than 10 days left before the July 9 deadline, the tug of war between South Korea and the U.S. is expected to continue. Park Jun-han, Arirang News.

S. Korea's industrial output, facility investment drop in May; retail sales remain flat

2025/06/30 22:34

South Korea's industrial production and facility investment fell for the second straight month in May. The government believes the figures will pick up once the supplementary budget takes effect on the local economy in the second half of the year. Moon Ji-young explains. Industrial output and facility investment here both declined in May from the previous month, while retail sales remained flat. According to Statistics Korea on Monday, industrial production declined by 1-point-1 percent on-month in May, continuing its downward trend for a second month. This was largely driven by contraction in the mining and manufacturing sectors, which are the backbone of the economy. "Mining and manufacturing production fell 2.9 percent month-on-month, with gains in primary metals and petroleum refining offset by drops in pharmaceuticals and metal processing." May's facility investment dropped by more than 4 percent from the previous month, marking three months of decline. Retail sales, a gauge of private spending, remained unchanged from a month earlier. In April, all three major economic indicators -industrial output, retail sales, and investment -had recorded declines, showing the fragility of the country's recent economic momentum. Against this backdrop, the National Assembly passed a first supplementary budget bill in early May. "We anticipate the effects of the supplementary budget to be felt in the economy in the latter half of this year, following a time lag." He also explained that the direct impact of U.S. tariff policies on this overall production decline was not significant, and added that their effects might gradually appear after the July tariff negotiations. Meanwhile, business sentiment among export companies is projected to continue to deteriorate for the third quarter. This comes as the Korea International Trade Association announced on the same day that the third-quarter Export Business Survey Index was recorded below 100. The association attributed this sustained sluggishness to ongoing trade uncertainties, including U.S. tariff measures, coupled with slowing global growth and increased exchange rate volatility. Moon Ji-young, Arirang News.

S. Korea's industrial output, facility investment drop in May; retail sales remain flat

2025/06/30 20:34

Findings for May show a second straight month of decline in industrial production on month amid the doldrums in the mining and manufacturing sectors. Moon Ji-young covers the latest findings. South Korea's industrial output and facility investment both declined in May from the previous month, while retail sales remained flat. According to Statistics Korea on Monday, industrial production declined by 1-point-1 percent on-month in May, continuing its downward trend for a second month. This was largely driven by contraction in the mining and manufacturing sectors, which are the backbone of the economy. "Mining and manufacturing production fell 2.9 percent month-on-month, with gains in primary metals and petroleum refining offset by drops in pharmaceuticals and metal processing." May's facility investment dropped by more than 4 percent from the previous month, marking three months of decline. Retail sales, a gauge of private spending, remained unchanged from a month earlier. In April, all three major economic indicators -industrial output, retail sales, and investment -had recorded declines, showing the fragility of the country's recent economic momentum. Against this backdrop, the National Assembly passed a first supplementary budget bill in early May. "We anticipate the effects of the supplementary budget to be felt in the economy in the latter half of this year, following a time lag." He also explained that the direct impact of U.S. tariff policies on this overall production decline was not significant, and added that their effects might gradually appear after the July tariff negotiations. Meanwhile, business sentiment among export companies is projected to continue to deteriorate for the third quarter. This comes as the Korea International Trade Association announced on the same day that the third-quarter Export Business Survey Index was recorded below 100. The association attributed this sustained sluggishness to ongoing trade uncertainties, including U.S. tariff measures, coupled with slowing global growth and increased exchange rate volatility. Moon Ji-young, Arirang News.

S. Korea may face 0.4% decline in real GDP if tariff effects are fully felt

2025/06/30 20:34

In related news. The Trade Ministry hosted a public hearing earlier on this Monday during which industry insiders and economic experts shared concerns over U.S. tariffs and their ripple effects. Our correspondent Park Jun-han was there. South Korea may face a 0.3 to 0.4 percent decline in real GDP if tariff effects are fully felt. This was mentioned during a public hearing held by the Ministry of Trade, Industry and Energy on Monday, based on a feasibility review conducted by the Korea Institute for International Economic Policy. "If all the tariffs imposed or planned by the Trump administration were to materialize, our projections estimated that real GDP growth could decline by approximately 0.3% to 0.4%." The hearing was held a day after Trade Ministry officials from the new Lee Jae Myung administration returned from high-level tariff negotiations in the United States last week. The talks involved six areas of trade between South Korea and the U.S., namely, balanced trade, non-tariff measures, economic security, digital trade, country of origin, and commercial considerations. People from various sectors, including agriculture, steel, automobiles and oil, gathered to express complaints and called for transparent disclosure of progress in the negotiations. While the trade ministry expressed sympathy to industries affected by the tariffs, it explained that only limited information could be shared, as the potential harm of disclosing the details of the negotiations outweighs the benefits. "If you look at global or domestic media, there's very little information on which countries specifically received what demands and how they responded to certain tariff-related issues. I believe this is due to concerns over transparency, as making the negotiations public could be detrimental to the national interest." The trade ministry will soon report to the National Assembly on the treaty signing plan following the public hearing, in accordance with Article 6 of the Commerce Treaty Act, which mandates the formulation and reporting of plans for concluding commerce treaties. Although the pace of negotiations is likely to pick up, it's still unclear when a deal will be reached — or what kind of tariffs might follow. With less than 10 days left before the July 9 deadline, the tug of war between South Korea and the U.S. is expected to continue. Park Jun-han, Arirang News.

Trump does not expect to extend tariffs deadline beyond July 9th

2025/06/30 11:39

As the tariff pause deadline set by President Donald Trump looms, the U.S. leader is now hinting that there will not be an extension beyond July 9 when the negotiating period for countries expires. Our Kim Bo-kyoung starts us off. With just over a week to go before the 90-day extension on tariffs ends, President Donald Trump said he does not expect a further extension. and said his administration will soon send notifications to countries. "But we're going to be sending letters out (to countries) starting pretty soon. Listen, what we're gonna do is we're going to send and we will say, congratulations, we're allowing you to shop in the United States of America. You're going pay a 25% tariff or a 35% or a 50% or 10%." The U.S. president was speaking in an interview with Fox News, which was taped Friday and broadcast Sunday. His words suggest that a reciprocal tariff of up to 50 percent could be unilaterally imposed, while certain countries will have a basic tariff of 10 percent imposed on them. He mentioned Japan as well, saying a letter could be sent to Tokyo. Trump emphasized that it is "unfair" that Japan does not import many U.S. cars while the U.S. imports millions of Japanese cars. When it was put to him that American car manufacturers do not want Japanese and Korean car companies to face lower tariffs than they do, he said that would not happen, adding that U.S. carmakers are too busy selling cars in America to even worry about it. Meanwhile, South Korea's top trade negotiator, Yeo Han-koo, who returned on Sunday from a week-long trip to Washington for the first trade talks under the new Lee administration, said a certain level of trust has been built to accelerate negotiations. According to Yeo, after he met U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, Washington again showed interest in Korea's participation in the Alaska LNG project. "Under the new administration, a channel for conducting negotiations with the U.S. has now been established. As for the Alaska project, the U.S. has continued to show strong interest and hopes that Korea will participate." He added that Seoul will seek the most suitable approach for the country's national interest, while closely monitoring the political and economic developments in the U.S. Kim Bo-kyoung, Arirang News.

KOSPI reclaims 3,000 mark: what lies ahead for local stocks?

2025/06/28 13:35

Last Friday, for the first time in 3 years and 6 months, South Korea's benchmark KOSPI surpassed the 3,000 mark, long considered a "psychological resistance level." Not only that, the KOSPI closed trading above 3,100 on Tuesday. Although the index has not yet reached its previous record high of 3,300, expectations surrounding the local stock market are fueling momentum. For more on this, we have our economic correspondent, Park Jun-han, here in the studio with us to give us insight into how local stocks have been performing lately. Welcome, Jun-han. Great to be here, Eun-ji. Jun-han, it seems like the market is extending its post-election honeymoon rally? That's right, Eun-ji, South Korea's benchmark KOSPI broke 3,100 on Tuesday for the first time in 3 years and 9 months. It's also notable that South Korea's stock market ranked first in returns for June among G20 countries, coming in above 15 percent. And this is by far the highest increase among all G20 countries, as no other country saw gains exceeding 5 percent in the same period. Now, among the various factors that led to the rally, experts point to eased uncertainties and expectations surrounding the new Lee Jae Myung administration's economic policies as key reasons for the surge. Take a listen to what an economic analyst has to say about the momentum behind the rally. "The weakening of the dollar, coupled with a cycle of fiscal policy expansion and interest rate cuts in emerging economies outside the U.S., has created a favorable environment for investment. After a period of political uncertainty, the snap presidential election removed some of these and resulted in a strong inflow on policy expectations." 2. I see the reason why Korean stocks underperformed, but wasn't it just three months ago that the KOSPI recorded its yearly low? How did it go up over 30 percent in just a few months? Yes Eun-ji. The first half of 2025 in South Korea was marked by both internal and external uncertainties, which the market is extremely sensitive to. As mentioned earlier, the political instability caused by the martial law declared last December by then-President Yoon Suk Yeol pressured investor sentiment and led to an outflow of foreign funds. Moreover, tariff threats from U.S. President Donald Trump also negatively impacted investor confidence. In early April, Trump announced plans to impose 25 percent "reciprocal" tariffs on Korea. The announcement heightened concerns about inflation and contributed to the weakening of the competitiveness of South Korean exports. However, Trump temporarily suspended reciprocal tariffs for 90 days just days after his initial announcement, leaving room for negotiation. Since then, stock markets around the world, which had plunged earlier, began to rebound. President Lee, who has long promised to usher in the "KOSPI 5,000 era," declared the start of this new chapter as, quote, a "new period with new hopes." Take a listen to what he said last week. "I hope that the Korean stock market, which is at 2,992.1 right now, will pass the 3,000 point mark and move into a new period, with new hopes." Lee also visited the Korea Exchange earlier this month and highlighted the importance of dividend payouts and a zero-tolerance policy for stock price manipulation, pledging to lead the market through various reforms, including shareholder return policies and amendments to the Korean Commercial Act. 3. So now we know that Lee Jae Myung is fully committed to achieving KOSPI 5,000 during his term. What approaches should he take to actually make this possible? Of course, it will be crucial for President Lee's policy pledges to be implemented swiftly. Take a listen to what a chief economist had to say about KOSPI's long-term growth outlook. "While the government is trying to stimulate domestic demand through a large-scale supplementary budget, measures such as expanding AI investment and improving systems related to commercial law amendments should be implemented swiftly. Moreover, the early settlement of tariff negotiations will help lay the foundation for achieving this goal within the next two to three years, if not immediately." 4. Alright, so the last question is: What are the obstacles that could hinder a further rally of South Korean stocks? Actually, there are some variables that could prevent further momentum. For example, the U.S. has indicated a possible extension to its pause on tariffs to go beyond the July 9 deadline. Also, although there's a ceasefire in the conflict between Israel and Iran, uncertainties could be reignited if both sides clash again. Take a listen to what market experts have to say about factors that might affect the local market. "In the case of wars, we'll have to wait and see how long they last and how predictable they are, as both factors will affect the economy going forward." "I think the overall U.S. economy and tariff policy, along with South Korean companies' second quarter results, will be key factors in determining how our stock prices move in the third quarter." Investing always comes with both opportunities and risks. In times of rapidly changing markets, I encourage viewers of our channel to manage their assets wisely. Thank you, Jun-han, for the report. Thank you, Eun-ji, I hope to see you again soon.