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Growing downside risks to S. Korean economy amid U.S. tariff pressures: KDI

2025/04/07 20:00

A state-run think tank has highlighted the presence of greater external risk factors to the Korean economy, notably U.S. trade barriers. Moon Hye-ryeon has more. A state-run think tank has diagnosed continued downside risks to South Korea's economy for the fourth consecutive month, citing growing uncertainties in global trade. In the April edition of its monthly economic trends report, the Korea Development Institute stated that external conditions are "rapidly deteriorating" in light of the recent tariff announcement from the United States, and paired with the slowdown in both domestic and global demand, the situation is exacerbating. Last week, Washington announced that it would impose tariffs of 25 percent on South Korean goods, and a separate 25 percent tariff on global automobiles and auto parts. Automobiles are South Korea's top export to the United States, with nearly half of the country's total auto shipments headed there last year. The KDI noted that if the U.S. continues to escalate its protectionist trade measures – as U.S. President Trump has threatened to do – it could further erode corporate sentiment and hinder investment and export growth. While South Korea's exports rose by more than three percent in March, the think tank warned that this recovery remains fragile, with exports in the first quarter of the year showing a contraction due to a slowdown in the ICT sector. The KDI also pointed to continued sluggish consumer spending as another drag on the economy. While internal consumption of durable goods briefly rebounded thanks to a temporary tax cut on automobiles for the first half of the year, overall retail sales for January and February were down with persistent weakness in sales of semi-durable and non-durable goods. Consumer sentiment in March stayed pessimistic, with the central bank's Consumer Sentiment Index data showing that it has yet to recover to levels seen before the martial law declaration last December. Going forward, the think tank stressed the importance of closely monitoring both global developments and domestic demand to avoid further drag on recovery. Moon Hye-ryeon, Arirang News.

Growing downside risks to S. Korean economy amid U.S. tariff pressures: KDI

2025/04/07 17:00

And as expected a state-run think tank has highlighted the presence of greater external risk factors to the Korean economy notably U.S. trade barriers. Our correspondent Moon Hye-ryeon has more. A state-run think tank has diagnosed continued downside risks to South Korea's economy for the fourth consecutive month, citing growing uncertainties in global trade. In the April edition of its monthly economic trends report, the Korea Development Institute stated that external conditions are "rapidly deteriorating" in light of the recent tariff announcement from the United States, and paired with the slowdown in both domestic and global demand, the situation is exacerbating. Last week, Washington announced that it would impose tariffs of 25 percent on South Korean goods, and a separate 25 percent tariff on global automobiles and auto parts. Automobiles are South Korea's top export to the United States, with nearly half of the country's total auto shipments headed there last year. The KDI noted that if the U.S. continues to escalate its protectionist trade measures – as U.S. President Trump has threatened to do – it could further erode corporate sentiment and hinder investment and export growth. While South Korea's exports rose by more than three percent in March, the think tank warned that this recovery remains fragile, with exports in the first quarter of the year showing a contraction due to a slowdown in the ICT sector. The KDI also pointed to continued sluggish consumer spending as another drag on the economy. While internal consumption of durable goods briefly rebounded thanks to a temporary tax cut on automobiles for the first half of the year, overall retail sales for January and February were down with persistent weakness in sales of semi-durable and non-durable goods. Consumer sentiment in March stayed pessimistic, with the central bank's Consumer Sentiment Index data showing that it has yet to recover to levels seen before the martial law declaration last December. Going forward, the think tank stressed the importance of closely monitoring both global developments and domestic demand to avoid further drag on recovery. Moon Hye-ryeon, Arirang News.

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

2025/04/07 17:00

Well regardless of those remarks by Mr. Trump the Korean stock market tumbled during early trade on this Monday with a circuit breaker going into effect briefly in the morning to ward off panic selling. Our correspondent 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.

"No postponing" of tariffs: Lutnick

2025/04/07 10:00

And just hours before the shock to the South Korean stock market on Monday, the U.S. confirmed the recent reciprocal tariffs imposed by Washington will not be delayed and will begin on April 9th. Lee Seung-jae has the details. U.S. Commerce Secretary Howard Lutnick said Sunday that U.S. President Donald Trump will go ahead with reciprocal tariffs announced last week, stressing that there would be no postponement. Speaking to CBS News the commerce secretary stressed the Trump administration's move to close all potential loopholes in the tariff policy. Reaffirming that the sweeping reciprocal tariffs will go into effect on April 9th, as scheduled, Lutnick shot down any idea that Trump would pause for negotiations, saying tariffs would remain in place for "days and weeks." Meanwhile,.. as Wall Street took a dive after the announcement of the reciprocal tariffs last week, U.S. Treasury Secretary Scott Bessent dismissed the idea that the levies would cause a recession in the U.S. Speaking to NBC on Sunday, Bessent said he wasn't worried about last week's stock market sell-off, adding that the market has consistently underestimated President Trump. He stressed that there's no reason that the U.S. would have to "price in a recession." Bessent also said that more than 50 countries have begun negotiating with the U.S. since the announcement of the reciprocal tariffs. The comments go in line with Trump's remarks last week that "every" country has called the U.S. for talks. "What we have is we have a set of tariffs based on what they've been charging us. That's reciprocal. And those tariffs have come in and every country's called us. That's the beauty of what we do. We put ourselves in the driver's seat. If we would have asked some of these countries, almost most of these countries, to do us a favor, they would have said no. Now they'll do anything for us." Neither Bessent nor any other U.S official named the countries that have begun holding talks with Washington over the reciprocal tariffs. Lee Seung-jae, Arirang News.

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

2025/04/07 10:00

U.S. President Donald Trump's tariff announcements have triggered massive sell-offs across South Korea's stock market. As of 9:02 AM on Monday, the KOSPI index stood at 2-thousand-352-point-72, down more than 4 percent from the previous session, while the tech-heavy KOSDAQ index fell by more than 3 percent. And the KOSPI 200 futures index fell 5-point-19 percent, triggering a sell-side sidecar for the first time in eight months at 9:12 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 one minute.

Seoul weighs tariff strategy, considers relief for auto sector

2025/04/06 18:00

Korea is reviewing options to tackle U.S. President Trump's major tariffs on America's trading partners. Separately, it's preparing a financial support package worth 2-billion dollars to help industries hit by the trade war. Our Moon Hye-ryeon has the details. As the United States imposes a 25 percent reciprocal tariff on South Korean goods, Seoul is cautiously preparing its negotiation strategy -including plans to dispatch its top trade official to Washington. The government is reportedly analyzing broader trade dynamics, as the U.S. appears to have based the new tariffs on trade surpluses rather than a detailed policy review. With countries like Vietnam also facing steep duties, companies such as Samsung -which produces more than half its global smartphone supply there -may be forced to restructure their supply chains. Seoul is closely watching how other major players, including Japan and the European Union, approach negotiations with Washington, all while seeking to reduce its trade surplus with the U.S. without undermining the foundations of its export-driven economy. In response to what officials are calling a "tariff shock," the South Korean government is preparing a financial support package worth nearly 3 trillion Korean won -or over 2 billion U.S. dollars -aimed at stabilizing key industries hit hardest, including automobiles and auto parts. The package, expected to roll out within the next week, will be delivered through state-run policy finance institutions such as the Korea Development Bank. Automobiles remain South Korea's top export to the United States, with nearly half of the country's total auto shipments headed there last year. Auto parts exports to the U.S. also hit a record high, underscoring the critical role of these sectors in bilateral trade. Amid these developments, domestic banks are rapidly tightening credit risk controls and reassessing their loan portfolios. In a notable example, one bank recently reclassified the secondary battery industry as high-risk -a move that signals a broader shift in risk assessment across the financial sector. With U.S. tariff policies continuing to evolve and uncertainty deepening, South Korean authorities and financial institutions are bracing for prolonged economic turbulence. Moon Hye-ryeon, Arirang News.

Seoul weighs tariff strategy, considers relief for auto sector

2025/04/06 12:00

Korea is reviewing options to tackle U.S. President Trump's major tariffs on America's trading partners. Separately, it's preparing a financial support package worth 2-billion dollars to help industries hit by the trade war. Our Moon Hye-ryeon has the details. As the United States imposes a 25 percent reciprocal tariff on South Korean goods, Seoul is cautiously preparing its negotiation strategy -including plans to dispatch its top trade official to Washington. The government is reportedly analyzing broader trade dynamics, as the U.S. appears to have based the new tariffs on trade surpluses rather than a detailed policy review. With countries like Vietnam also facing steep duties, companies such as Samsung -which produces more than half its global smartphone supply there -may be forced to restructure their supply chains. Seoul is closely watching how other major players, including Japan and the European Union, approach negotiations with Washington, all while seeking to reduce its trade surplus with the U.S. without undermining the foundations of its export-driven economy. In response to what officials are calling a "tariff shock," the South Korean government is preparing a financial support package worth nearly 3 trillion Korean won -or over 2 billion U.S. dollars -aimed at stabilizing key industries hit hardest, including automobiles and auto parts. The package, expected to roll out within the next week, will be delivered through state-run policy finance institutions such as the Korea Development Bank. Automobiles remain South Korea's top export to the United States, with nearly half of the country's total auto shipments headed there last year. Auto parts exports to the U.S. also hit a record high, underscoring the critical role of these sectors in bilateral trade. Amid these developments, domestic banks are rapidly tightening credit risk controls and reassessing their loan portfolios. In a notable example, one bank recently reclassified the secondary battery industry as high-risk -a move that signals a broader shift in risk assessment across the financial sector. With U.S. tariff policies continuing to evolve and uncertainty deepening, South Korean authorities and financial institutions are bracing for prolonged economic turbulence. Moon Hye-ryeon, Arirang News.

China hits back with 34% tariff on U.S.; stocks plunge, global markets in turmoil

2025/04/05 12:00

Trade tensions between the U.S. and China have reached a new peak, with both nations taking drastic steps that threaten to reshape global commerce. On Friday, China announced that it will impose a 34% tariff on all U.S. imports, starting next week. Stock markets tumbled following the announcement. Our Kim Jung-sil reports. In a dramatic escalation of the ongoing trade dispute, China has retaliated against the U.S. with a hefty 34% tariff on all U.S. imports. "The Customs Tariff Commission of the State Council announced on Friday that China will impose an additional 34% tariffs on all products imported from the United States starting from (12:01) April 10th." The move comes just days after U.S. President Donald Trump unveiled 54% tariffs on all Chinese imports. The new tariffs have sent shockwaves through global markets. In the U.S., all three major stock indexes plummeted, with the Dow Jones falling by 5.5% and the S&P 500 dropping nearly 6%, capping the worst week since 2020. Despite increased demand for safe-haven assets, gold prices also fell nearly 3%. Analysts suggest that the recent market crashes have left investors with liquidity shortages, prompting them to liquidate gold holdings to cover margin calls. "It's an economic Armageddon that was unleashed by Trump. And the tariff war has begun, and we believe this could set tech stocks and the tech industry in the U.S. back potentially a decade." Analysts warn that the economic consequences of the trade war could be severe, particularly for U.S. tech companies reliant on Asian supply chains. Professor Yang Jun-sok, an economics expert at The Catholic University of Korea, says China is directly challenging President Trump, arguing that once tariffs exceed a certain level, China faces little risk, but it has rattled American investors. "It'll be a big question whether the European Union and Canada will join China in retaliation. If they do, then President Trump may have no choice but to back down from his high tariff policy." As stock markets continue to tumble, all eyes are on whether China's latest move will prompt President Trump to reconsider his aggressive tariff policies. Kim Jung-sil, Arirang News.

Korean won strengthens against U.S. dollar; KOSPI falls on chip tariff fears

2025/04/04 20:00

The local currency strengthened against the greenback on Friday, driven by the dollar's weakness and eased political uncertainties. Moon Ji-young explains. The Korean won strengthened on Friday, trading against the U.S. dollar at 1-thousand-4-hundred-34-point-1 won at 3:30 PM, down 32-point-9 won from the previous day. The local currency saw a brief spike against the greenback, trading at one-thousand-4-hundred-30-point 2 per U.S. dollar at one point as the Constitutional Court was delivering its ruling to oust President Yoon Suk Yeol. "This depreciation of the U.S. dollar can be primarily attributed to the concerns over an economic slowdown in the U.S. in addition to the strengthening of the Korean won, driven by eased political uncertainties" Meanwhile, the benchmark KOSPI lost 21-point-28 points or point-86 percent to close at 2645.42. As Trump announced that tariffs on chips will start "very soon" on April 3rd local time, semiconductors led the decline, with market bellwether Samsung Electronics falling 2-point-6 percent and its rival SK Hynix tumbling nearly 6-point-4 percent. On the same day, the so-called F4 gathering of top financial officials, including Finance Minister Choi Sang-mok, convened to assess market conditions following the Court's ruling. The officials concluded that there were no significant changes after the ruling and reaffirmed their commitment to addressing the increasing pressures on domestic companies and the economy resulting from U.S. tariffs. They highlighted the necessity of passing a supplementary budget of 10 trillion won, roughly 6.9 billion U.S. dollars, to the National Assembly. Moon Ji-young, Arirang News.

White House fixes S. Korea's reciprocal tariff rate at 25%

2025/04/04 20:00

Confusion emerged over the Trump administration's new tariffs set for South Korea, but now, the White House officially says the tax rate is set at 25-percent, not 26, as previously notified. Meanwhile, Wall Street saw its worst drop since the pandemic five years ago following the tariff announcement. Lee Soo-jin explains. The reciprocal tariff imposition on South Korea has been finalized at 25 percent. On Thursday local time, the annex to the executive order on the White House website was amended to 25 percent, from 26 percent. The amendment was made without a clear explanation. This comes after a panel presented by U.S. President Donald Trump at a Rose Garden event the day before listed the reciprocal tariff on South Korea as 25 percent, while the annex of the executive order stated it as 26 percent, causing confusion about the discrepancy. When the White House initially did not indicate any intention to make a correction, the South Korean government demanded one, arguing that under Trump's formula, Korea's tariff rate should be 25 percent, and not 26 percent. And this one percent difference is significant as it amounts to roughly 1-point-3 billion U.S. dollars. Meanwhile,.. the impact of the announcement of Trump's larger-than-expected tariffs was immediate in stock markets, with Wall Street on Thursday seeing its worst day since the COVID-19 pandemic in 2020. The S&P 500 plunged nearly 5 percent, and the Dow Jones, 4 percent, both suffering the biggest one-day drop since June 2020. And the tech-heavy Nasdaq, dropped nearly 6 percent, the largest decline since March 2020. Trump, however, in response to a question about the severe impact of his tariffs, dismissed concerns. "The markets are going to boom, the stock is going to boom, the country is going to boom, and the rest of the world wants to see is there any way they can make a deal." But market analysts are less optimistic. "It is nerve-wracking to watch markets go down by a couple of percent in a day, but my career spans back to the 1987 crash . So this one still ranks up there and is very concerning. Any time markets are down with this amount of vehemence, if you will, especially on unexpected news, it's worrisome." Analysts say the sharp decline reflects investor concerns that U.S. companies reliant on global supply chains could soon be subject to retaliatory measures from trading partners. In the meantime, Trump says he is open to negotiations. Lee Soo-jin, Arirang News.

[Econ & Biz] Tariff shock: S. Korea grapples with steep reciprocal tariffs and auto export levies

2025/04/03 20:00

For a closer look on what these new major U.S. tariffs mean for the local economy, our trade correspondent Moon Hye-ryeon joins us in the studio. Hye-ryeon, some 60 countries were included on the list. Give us some context as to how high the levies are for South Korea? Sure. In addition to the baseline tariff of 10 percent that applies to all countries, South Korea is being levied an extra 16 percent as one of Washington's listed "worst offenders" on trade – bringing the total to 26 percent. To put this into context, this is notably higher than what many analysts had anticipated, especially given the existing Free Trade Agreement between the two countries. The rate surpasses the tariffs applied to other U.S. allies, such as the European Union and Japan, making it the highest among Washington's FTA partners. Experts say that this comes as a result of a high trade deficit and South Korea's tariffs on U.S. agricultural goods. "The U.S. appears to be focusing on the agricultural sector because it has a high volume of agricultural exports. Also, South Korea's trade surplus with the U.S. was originally below 50 to 60 billion dollars. If a trade deficit with a specific country rapidly increases over a few years, U.S. federal law requires an investigation, and appropriate measures can be taken in response." Other than the reciprocal tariffs that will be applied within the next few days, 25 percent tariffs on all vehicles shipped to the U.S. took effect starting at midnight in Washington and 1 PM in Seoul. This auto tariff rate is consistent across all countries, so South Korea is not being singled out in this sector. What has been the response from the authorities thus far? Following the announcement, a series of high-level meetings were convened between government officials and industry leaders. Prime Minister Han Duck-soo was the first to respond, calling an emergency meeting to conduct a thorough analysis of the newly announced tariffs and their potential impact. He also emphasized the importance of negotiations with Washington to minimize economic damage. The government then held a macroeconomic policy meeting, presided over by Finance Minister Choi Sang-mok, to assess market reactions and pledge all necessary measures to stabilize any excessive volatility as the benchmark KOSPI began trading more than 2.7 percent down from the previous session. Targeted support for industries most vulnerable to the tariffs was also outlined. "We will sequentially announce detailed support measures to counter tariffs, including support for industries expected to be affected such as automobiles, and the expansion of refund guarantees for shipbuilding." Meanwhile, industry leaders, government officials, and economic organizations gathered for further discussions on the potential impact on South Korean businesses. With the presidential impeachment verdict set for tomorrow, concerns have emerged over the absence of strong leadership to spearhead negotiations, raising uncertainty about the government's ability to navigate the crisis effectively. Which industries could suffer the most? Although auto tariffs are spared extra reciprocal tariffs, with around half of South Korea's exports to the U.S. reliant on auto shipments, these levies are expected to hit hard. Here's what an expert said. "Half of all cars exported abroad are shipped to the U.S., meaning Hyundai and Kia will take the biggest hit. In particular, Korea's GM branch, which sends roughly 85 percent of its vehicles to the U.S., is likely to suffer a direct blow." And it's not just vehicles but levies on auto parts, too, that could lead to higher costs for domestic automakers. With the Trump administration also preparing to implement levies on other goods including semiconductors, this could also be a cause for concern. "Many big tech companies, including Apple, as well as South Korean firms, have extensive production facilities in China, Vietnam, India, Malaysia, and Indonesia. Because of this, shifting supply chains in the short term is not easy. If the overall scale of ICT product exports to the U.S. shrinks even slightly, South Korea's semiconductor industry may also see a decline in exports." With pressure mounting on the South Korean government to strike a deal to secure a deal or risk a further slowdown in its manufacturing sector, a shift in strategy from pledging investments in the U.S. is needed. Alright, thank you for your report, Hye-ryeon. Thanks for having me.

S. Korean stocks show volatility amid U.S. tariff pressure, Choi vows immediate stabilization measures

2025/04/03 17:00

The local stock market ended DOWN in response to the Trump administration's reciprocal tariffs. The KOSPI surrendered 0-point-7 percent to close its trade on this Thursday at 2-thousand-4-hundred-86-point-7. The index plunged 2-point-7 percent at the start of its session today to open at around 2-thousand-4-hundred-37 points but it regained some ground in the course of the day. Separately Finance Minister Choi Sang-mok has said relevant authorities are closely monitoring the stock market and are poised to intervene in the event of excessive fluctuations.

S. Korea's consumer prices in March rise by 2.1% year-on-year

2025/04/02 20:00

Inflation at home remained within the two-percent range in March for the third month in a row. Park Jun-han covers the latest finding and more. South Korea's consumer price data shows steady inflation in the low 2-percent range over the past three months. In March, consumer prices increased by 2-point-1 percent compared to March the previous year. The inflation over the past three months is slightly higher than September to December last year when inflation was in the 1-percent range. The price of cabbages went up by 49-point-7 percent and radishes went up by 86-point-4 percent. The price of processed foods rose by 3-point-6 percent. That's the biggest jump in fifteen months, pushing overall inflation up by point-three percentage points. Statistics Korea attributed the increase in processed food prices to three factors: a rise in raw material prices, the high foreign exchange rate, and rising labor and energy costs. Meanwhile, the cost of services also went up, with both public and personal services seeing price rises. The price of public services, which include things like transport and tuition fees, increased by 1-point-4 percent year-on-year. The increase was mainly due to the rise in private university tuition. The price of personal services is 3-point-1 percent higher than a year ago. The increase was due to increased demand in trips in March. Finance Minister Choi Sang-mok pledged at the Ministerial Meeting on Economic Affairs to use the government's full range of capabilities to stabilize perceived inflation. "In April and May, we will allocate an additional 30 billion Korean won to support agricultural product discounts, and we will supply more than a hundred tons of cabbages and radishes to the market every day to stabilize supply and demand. We will also lower the price burden of food ingredients through new quota tariffs on raw pork meat and 원재료 가격 상승, 높은 환율, 그리고 노동 및 에너지 비용 증가 등 세 가지 요인을 지적했습니다.processed egg products." The Bank of Korea on Wednesday said that the inflation rate is expected to remain stable around the target level of 2-percent. It also added that there is still a lot of uncertainty around the foreign exchange rate and oil price movements, as well as domestic demand. The central bank said it will keep a keen eye on future inflation levels. Park Jun-han, Arirang News.

Hyundai, Kia set record March auto sales in U.S. market

2025/04/02 17:00

Hyundai Motor and its affiliate Kia Motors set new records in sales for the month of March in the U.S. market. According to the latest company data the two carmakers combined sold some 1-hundred-70-thousand units last month UP about 13 percent on year. This is reportedly the highest-ever March sales and also marks the sixth straight month of growth. This latest performance is being linked to stellar sales of eco-friendly vehicles.

S. Korean gov't allocates US$ 273 mil. for areas affected by wildfires

2025/04/02 17:00

Finance Minister Choi Sang-mok has pledged tangible support for agricultural areas affected by the worst wildfires in the nation's history. Speaking at an economic ministerial meeting earlier on this Wednesday Choi added the support will seek to stabilize the supply and prices of agricultural products and assist farmers affected by the recent fires. At least four-hundred-billion Korean won or some 2-hundred-73 million U.S. dollars will be allocated for the restoration of equipment and facilities the purchase of livestock feed and emergency livelihood relief. Separately the death toll from last week's devastating fires has risen to 31 with another fatality reported today.

S. Korea's consumer prices in March rise by 2.1% year-on-year

2025/04/02 17:00

Inflation here in Korea in March remained within the two-percent range for the third month in a row. Park Jun-han covers the latest finding and more. South Korea's consumer price data shows steady inflation in the low 2-percent range over the past three months. In March, consumer prices increased by 2-point-1 percent compared to March the previous year. The inflation over the past three months is slightly higher than September to December last year when inflation was in the 1-percent range. The price of cabbages went up by 49-point-7 percent ( 1) and radishes went up by 86-point-4 percent ( 2). The price of processed foods rose by 3-point-6 percent ( ). That's the biggest jump in fifteen months, pushing overall inflation up by point-three percentage points. Statistics Korea attributed the increase in processed food prices to three factors: a rise in raw material prices, the high foreign exchange rate, and rising labor and energy costs. Meanwhile, the cost of services also went up, with both public and personal services seeing price rises. The price of public services, which include things like transport and tuition fees, increased by 1-point-4 percent year-on-year. The increase was mainly due to the rise in private university tuition. The price of personal services is 3-point-1 percent higher than a year ago. The increase was due to increased demand in trips in March. Finance Minister Choi Sang-mok pledged at the Ministerial Meeting on Economic Affairs to use the government's full range of capabilities to stabilize perceived inflation. "In April and May, we will allocate an additional 30 billion Korean won to support agricultural product discounts, and we will supply more than a hundred tons of cabbages and radishes to the market every day to stabilize supply and demand. We will also lower the price burden of food ingredients through new quota tariffs on raw pork meat and raw egg products." The Bank of Korea on Wednesday said that the inflation rate is expected to remain stable around the target level of 2-percent. It also added that there is still a lot of uncertainty around the foreign exchange rate and oil price movements, as well as domestic demand. The central bank said it will keep a keen eye on future inflation levels. Park Jun-han, Arirang News.

S. Korea's consumer prices in March rise by 2.1% year-on-year

2025/04/02 10:00

Consumer prices in South Korea in March saw an increase in the two-percent range for the third consecutive month. According to inflation data from Statistics Korea, consumer prices in March increased by 2-point-1 percent year-on-year. Notably, marine products went up by four-point-nine percent and processed foods went up by three-point-six percent. Recent consumer price data shows a steady rise in the low two-percent range over the past three months, slightly higher than September to December last year when inflation was in the one-percent range.

S. Korea's exports rise for second straight month in March on strong chip demand

2025/04/01 20:00

Korea's exports expanded for the second month in a row in March gaining over three-percent from a year ago backed by shipments of semiconductors. Lee Soo-jin has details. South Korea's exports grew for the second consecutive month in March amid mounting concerns over U.S. President Donald Trump's impending tariffs announcement. Data from the Ministry of Trade, Industry and Energy on Tuesday shows that the value of exports last month came to 58-point-2 billion U.S. dollars, up 3-point-1 percent compared to the previous year. Korea's exports declined in January ,.. ending a 15-month streak of on-year growth, but rebounded in February and showed an upward trend in March. This comes as outbound shipments of semiconductors, the country's top export item, rose nearly 12 percent on-year, driven by strong demand for high-value memory semiconductors such as HBM and DDR5. Chip exports rebounded in March after showing negative growth in February and fell below the 10 billion dollar mark, after surpassing it for nine consecutive months. Shipments of automobiles,.. another key export item, also increased for the second consecutive month as growth in shipments of hybrid, gasoline, and diesel vehicles continued from the previous month. And while exports of steel, fell, an official from the government said that the drop was not due to the Trump administration's 25 percent aluminum and steel tariffs imposed last month. "Export volume has remained largely unchanged. Typically, there is a two to three-month lag between signing a steel contract and the actual exporting, meaning the impact of tariffs on steel is yet to fully take effect." Outbound shipments of aluminum, which were also subject to the 25 percent tariff, saw a more than 20 percent increase last month. But with additional duties, including reciprocal tariffs and the 25 percent auto tariffs set to take effect this week, likely to bring greater trade uncertainties, the official said the government will provide export vouchers and expert consultation services for companies. The country's imports rose 2-point-3 percent, leading to a second straight month of trade surplus. Lee Soo-jin, Arirang News.

Impeachment uncertainty shakes markets: What’s next for Korea’s economy?

2025/04/01 20:00

Welcome to Within The Frame, where we bring the most pressing issues across the globe into focus, I'm Kim Mok-yeon. As South Korea's political landscape remains mired in uncertainty following the December 3rd martial law crisis and the prolonged impeachment proceedings against President Yoon Suk Yeol, concerns are mounting over the potential economic fallout. From a volatile Korean won-U.S. dollar exchange rate and rising credit default swap premiums to downward revisions in GDP growth forecasts and rising food prices, the ripple effects are being felt across financial markets and consumer sectors alike. So, what exactly is driving the economic instability? How will the impeachment verdict impact the markets? For answers to this, we invite Yang Jun-sok, Professor of Economics at the Catholic University of Korea. Welcome. Also joining us online is Park Min-jung, Professor of Business Administration at Kumoh National Institute of Technology. Great to have you. (YANG) 1. Let's start with Prof. Yang. So the political turmoil triggered by the December 3rd martial law emergency has lasted for over three months, intensifying economic instability. Notably, the won-dollar exchange rate has surpassed the 1,470 mark again after more than 50 days AND maintained such a level for the second day. What are the reasons for this increase? (PARK) 2. Now the exchange rate is expected to fluctuate further depending on the impeachment verdict of President Yoon Suk Yeol, which is set for Friday. There is speculation that, along with the ripple effects of Trump's tariff imposition, the rate could break the 1,500 won mark. Professor Park, what is your outlook on this? (YANG) 3. Amid the prolonged impeachment situation, concerns are rising about a possible downgrade of the national credit rating. It is reported that the Credit Default Swap premium, which reflects national external credibility, is rebounding. Prof. Yang, what is the current situation? How could increasing credit risk impact the Korean economy? (PARK) 4. Alongside the rise in CDS premiums, overseas institutions are successively lowering their economic growth forecasts for Korea this year. Some even predict that the growth rate could fall to the 0% range. Prof. Park, what are the possible countermeasures to overcome declining economic growth? (YANG) 5. Shifting gears, the food and restaurant industries are continuously raising prices. This contrasts sharply with the same period last year when price hikes among food companies were rare. Prof. Yang, what are the reasons behind the rising food prices? (PARK) 6. As for the cause, some criticize that the political vacuum in Korea may have pushed companies to accelerate price hikes. What are your thoughts on this, Prof. Park? (YANG) 7. There are also analyses suggesting that the recent wildfires in the southeast may affect consumer prices to some extent. What is your take on this, Prof. Yang? What is the outlook for food price trends going forward? (PARK) 8. There are concerns that the inflation rates for processed food and dining-out prices may soon exceed 3%. What countermeasures are needed for effective inflation control, Prof. Park? (YANG) 9. Now, as part of efforts to ease the burden on the public, the government officially announced a supplementary budget of about 10 trillion won. This is the first time the budget authorities have formally declared such a move. What led to this decision, Prof. Yang? Also, why is it being called an "essential" supplementary budget?

S. Korea's exports rise for second straight month in March on strong chip demand

2025/04/01 17:00

Korea's exports expanded for the second month in a row in March gaining over three-percent on year backed by shipments of semiconductors. Our correspondent Lee Soo-jin has details. South Korea's exports grew for the second consecutive month in March amid mounting concerns over U.S. President Donald Trump's impending tariffs announcement. Data from the Ministry of Trade, Industry and Energy on Tuesday shows that the value of exports last month came to 58-point-2 billion U.S. dollars, up 3-point-1 percent compared to the previous year. Korea's exports declined in January ,.. ending a 15-month streak of on-year growth, but rebounded in February and showed an upward trend in March. This comes as outbound shipments of semiconductors, the country's top export item, rose nearly 12 percent on-year, driven by strong demand for high-value memory semiconductors such as HBM and DDR5. Chip exports rebounded in March after showing negative growth in February and fell below the 10 billion dollar mark, after surpassing it for nine consecutive months. Shipments of automobiles,.. another key export item, also increased for the second consecutive month as growth in shipments of hybrid, gasoline, and diesel vehicles continued from the previous month. And while exports of steel, fell, an official from the government said that the drop was not due to the Trump administration's 25 percent aluminum and steel tariffs imposed last month. "Export volume has remained largely unchanged. Typically, there is a two to three-month lag between signing a steel contract and the actual exporting, meaning the impact of tariffs on steel is yet to fully take effect." Outbound shipments of aluminum, which were also subject to the 25 percent tariff, saw a more than 20 percent increase last month. But with additional duties, including reciprocal tariffs and the 25 percent auto tariffs set to take effect this week, likely to bring greater trade uncertainties, the official said the government will provide export vouchers and expert consultation services for companies. The country's imports rose 2-point-3 percent, leading to a second straight month of trade surplus. Lee Soo-jin, Arirang News.