News

Hamas says it fired rockets toward Tel Aviv as Israel renews attacks on Gaza

2025/03/21 10:00

Hostilities in the Middle East are escalating, with Hamas launching rockets in response to Israel's renewed military operations. Hamas claimed to have fired three rockets toward Tel Aviv on Thursday, following resumed military operations by Israel in Gaza. This marks Hamas' first offensive since a ceasefire collapsed earlier this week following Israel's resumption of air and ground operations in Gaza. The Israeli military reported that one of the three rockets was intercepted by air defenses, while the others landed in open areas, causing no casualties. Yemen's Houthi rebel group also fired two ballistic missiles at Israel on Thursday but these were intercepted. Israeli airstrikes have resulted in over 500 Palestinian deaths and hundreds of injuries since Tuesday, with at least 85 fatalities reported on Thursday alone. Israeli Defense Minister Israel Katz has threatened "total devastation" of Gaza unless Hamas releases the remaining hostages.

S. Korea seeking advances in medical industry using AI and medical tourism

2025/03/21 10:00

An annual medical conference took place here in the country with a showcase of how healthcare taps into AI as well as growing international recognition in the industry. Ahn Sung-jin tells us more. AI and healthcare. The combination of these is going beyond implementation, as companies seek to weave them into our daily lives. South Korea's Health Ministry and the Korea Health Industry Development Institute are hosting the annual Medical Korea conference to connect those in the field, and promote discussions on the implications of this. With a need for more healthcare workers and an aging population, AI integration into people's daily lives has become inevitable, and an expert says this is not as a replacement, but as a helper. "There is no doubt that AI is here to stay in the medical industry the people who are concerned or worried about AI are going to struggle in the future as AI becomes more and more intercalated into everything that we do." Alongside the use of smart technology in our everyday lives, Korea is also promoting medical tourism, welcoming those seeking K-beauty healthcare. "An increase in the number of patients visiting Korea for medical purposes implies that not only is our medical technology acknowledged worldwide, but also suggests that we are becoming a focal point for medical tourism in Asia." As Korea receives more international recognition, medical tourists continue to increase with the number soon to exceed 1 million. "Many Korean companies in the beauty and medical industry are here to showcase the latest trends as well as to network and find partners." With more tourists spending on healthcare and reinvigorating the economy, companies are aiming to increase their competitiveness in the field. "Due to Hallyu, Korean healthcare products are garnering more attention, and I hope to share this worldwide." As the country steps up as a medical powerhouse, efforts from stakeholders are set to become more apparent. Ahn Sung-jin, Arirang News.

S. Korea draws against Oman in World Cup qualifier

2025/03/21 10:00

The South Korean men's national football team was held to a draw against Oman in a World Cup qualifying match on Thursday night. Despite playing in front of the home crowd at Goyang Stadium in Gyeonggi-do Province, and far outranking the Middle Eastern team, South Korea only managed a 1-1 draw, without some key players due to injuries. Wolverhampton Wanderers striker Hwang Hee-chan scored in the 41st minute after a sharp pass from Lee Kang-in to put South Korea one up. Oman leveled the match with an 80th minute goal. With three matches left, South Korea is top of Group B with 15 points from four wins and three draws. They'll play Jordan on Tuesday at Suwon World Cup Stadium.

S. Korea's FM heads to Tokyo for trilateral meeting with Japanese, Chinese counterparts

2025/03/21 10:00

South Korea's foreign minister Cho Tae-yul left for Tokyo this morning to take part in a trilateral meeting with his Japanese and Chinese counterparts. Throughout his two-day visit, Cho is also scheduled to hold separate bilateral meetings with Japan's Foreign Minister Takeshi Iwaya and China's Foreign Minister Wang Yi. The three officials are expected to hold discussions on a wide range of regional and global issues. This marks their first meeting since South Korea's brief imposition of martial law in December, with their last meeting held in November, 2023 in Busan.

S. Korea's minister of trade to hold high-level talks with Washington about its "Sensitive Countries List" and tariffs

2025/03/21 10:00

South Korea is pushing for negotiations amid potential new U.S. tariffs and restrictions on scientific collaboration. Trade Minister Ahn Duk-geun is back in Washington for crucial talks. Our Moon Hye-ryeon reports. As the United States prepares to announce reciprocal tariffs next month, South Korea's Minister of Trade, Industry and Energy has returned to Washington in an effort to secure Seoul's removal from its recent designation into the U.S. Energy Department's "Sensitive and Other Designated Countries List". On Thursday, local time, Trade Minister Ahn Duk-geun spoke to reporters about the government's stance prior to beginning a series of high-level discussions. His first meeting is scheduled with the U.S. Secretary of Energy, Chris Wright. "Our priority is to seek South Korea's removal from the "Sensitive and Other Designated Countries List". If immediate removal is not possible, we will work on alternative solutions to ensure that this designation does not hinder scientific and industrial collaboration between our nations." If South Korea remains on the list, new restrictions on research collaborations and visits to institutions affiliated with the U.S. Energy Department will take effect starting April 15. However, Ahn gave reassurance that Washington has indicated that the designation is not expected to have a significant impact on bilateral scientific cooperation. His visit comes at a crucial time, ahead of the new Trump administration's anticipated tariff announcement on April 2nd, and securing a favorable position is another key objective for talks. This marks Ahn's second trip to Washington in just three weeks, following discussions with the U.S. Secretary of Commerce Howard Lutnick last month, and they are due to meet again. "The Korea-U.S. Free Trade Agreement (FTA) has effectively eliminated tariffs between our two countries. However, non-tariff barriers have emerged as a concern. We are actively addressing these issues domestically and will communicate our progress to our U.S. counterparts." U.S. Treasury Secretary Scott Bessent recently identified the so-called "Dirty 15" – a group of countries with significant tariffs on U.S. goods – as targets for the upcoming tariff measures. When asked whether South Korea could be included, Ahn stated it was too early to tell, and emphasized that South Korea already imports most U.S. goods without tariffs under the Free Trade Agreement between Seoul and Washington. Regarding a potential exemption from the new tariffs, the Trade Minister explained that there haven't been many cases where specific countries were granted exemptions – and it appears that the measures will be implemented first before adjustments can be made. He added that ongoing communication and negotiations will be needed to shape the trade framework between the two allies. Moon Hye-ryeon, Arirang News.

EU postpones retaliatory tariffs to mid-April for further negotiations with Washington

2025/03/21 10:00

The European Union has pushed back its first phase of retaliatory tariffs against the U.S., originally set to take effect on April 1st. The European Commission announced on Thursday that the countermeasures will now take effect on April 13th, and all at once instead of across two stages. The first phase originally was set to levy tariffs on U.S. exports of whiskey, motorboats and motorcycles to the EU, and the second phase on beer, poultry, beef and other produce. The announcement also stated the postponement would allow time for negotiations with Washington, and that tariffs would be imposed without further delay should they fail to find a resolution.

Ukraine minerals deal imminent: Trump

2025/03/21 10:00

U.S. President Donald Trump says a minerals deal with Ukraine is getting close, while officials from the U.S., Ukraine and Russia will be in Saudi Arabia next week in the hope of finding a breakthrough in peace talks. Lee Seung-jae reports. U.S. President Donald Trump said Thursday, that a minerals and natural resources deal with Ukraine is getting closer. Trump made the announcement at the White House,.. after signing an order to increase U.S. production of critical minerals. "We're doing very well with regard to Ukraine and Russia. And one of the things we are doing is signing a deal very shortly with respect to rare earths with Ukraine, which they have tremendous value in rare earth. And we appreciate that." Washington and Kyiv said earlier this month that they had agreed to conclude the minerals deal as soon as possible. The comments by Trump also come as he spoke with Ukrainian President Volodymyr Zelenskyy on Wednesday, in what the White House said was a "fantastic" one-hour phone call. President Trump also said Thursday that progress towards a ceasefire deal between Russia and Ukraine is progressing well. "And we spoke yesterday with, as you know, President Putin and President Zelenskyy. And we would love to see that come to an end. And I think we're doing pretty well in that regard. So hopefully we would save thousands of people a week from dying. That's what it's all about. They're dying." Meanwhile, officials from the U.S., Russia and Ukraine will head to Saudi Arabia next week to hold talks on a potential ceasefire deal. Talks on a U.S.-led proposal for a partial ceasefire will resume next Monday with Russian and Ukrainian officials holding talks separately with U.S. officials. According to President Zelenskyy speaking at a news conference in Oslo on Thursday, U.S. officials would meet with Ukrainian experts, and then hold separate talks with Russian representatives. The White House issued a statement saying that President Trump and Russian President Vladimir Putin had agreed to technical negotiations on a maritime ceasefire in the Black Sea, and a potential full ceasefire and permanent peace during their talks on Tuesday. Lee Seung-jae, Arirang News.

Constitutional Court to rule on PM's impeachment on Monday before announcing Pres. Yoon's verdict date

2025/03/21 10:00

While the country anxiously waits for the Constitutional Court to announce a ruling date for President Yoon's impeachment verdict, the court says it will deliver its verdict on Prime Minister Han Duck-soo's impeachment in the coming week. Our Oh Soo-young reports. The Constitutional Court will rule on Prime Minister Han Duck-soo's impeachment on Monday, likely before revealing the date for President Yoon Suk Yeol's impeachment verdict. On Thursday, the Court notified the media that the eight-member bench will deliver its decision, on whether or not to uphold the National Assembly's motion to remove the PM from office. In late December, the National Assembly with an opposition party majority pushed through an impeachment motion against Han. It accused him of abetting President Yoon’s December 3rd martial law and refusing to approve the appointments of three Constitutional Court justices. If the Constitutional Court dismisses the impeachment, Han Duck-soo will immediately resume his duties as prime minister and acting president. As Han's case is largely relevant to the President's impeachment, it seems the Court has deliberated on it first. Yoon's ruling date, however, is unlikely to be announced this week, according to one official. As the Court usually gives at least two days of notice in advance, and tends not to schedule ruling dates consecutively, this means the President's impeachment verdict could be delivered on Wednesday at the earliest. For over three weeks, the justices have been convening every day to deliberate on the top-level case -a record period of time compared to past presidential impeachment cases. Park Geun-hye's ruling was out 14 days after her final trial hearing, and Roh Moo-hyun's 11 days. It seems the justices are highly conscious that their constitutional decision could have explosive political and social ramifications, as protests for and against impeachment grow more ferocious by the day. A poll released on Thursday shows 60 percent of some 1-thousand people surveyed believe the Court should uphold Yoon's impeachment, while 35 percent believe the President should return to office. 57 percent believe the Court will choose to impeach Yoon,.. while 34 percent believe his case will be dismissed. Those supporting Yoon's impeachment wish to quickly trigger a snap presidential election, which polls show would largely favor opposition Democratic Party leader Lee Jae-myung. Meanwhile, conservatives including Yoon's supporters are calling for the case to be dismissed, or for the Court to deliver a ruling after Lee Jae-myung's own verdict, on one of his five criminal cases next Tuesday. Experts say the judicial bench is likely fine-tuning the judgment on Yoon's case to ensure it can be broadly accepted by a highly polarised public. With various overlaps in the grounds for impeachment between Yoon and Han's respective cases, the Court's ruling on the PM's trial may provide insights into how the justices are deliberating on the President's impeachment. Oh Soo-young, Arirang News.

[Weather] Big warm up ahead but poor air quality stays

2025/03/21 10:00

It's hard to believe that just three days ago, the capital was covered in snow, but now, spring warmth is in full swing! Today will be even warmer and temperatures will rise even further over the weekend. In Seoul, we're expecting highs of 22 degrees Celsius on Sunday. The skies will stay mostly clear, but the air quality isn't great. With dust continuing to blow in from the west, most areas will see high concentrations throughout the day. Meanwhile, strong wind advisories remain in place along the east coast, and gusty winds will continue in those areas. Ulsan and nearby areas are under dry weather advisories. Make sure to stay cautious of fire risks. By the afternoon, we'll see temperatures going anywhere from 1 to 5 degrees higher than yesterday. Topping out at 17 degrees in the capital, Daegu at 22 degrees. The mild and sunny spring weather will continue into early next week. However, the temperature swings will remain quite large, so keep that in mind when dressing for the day.

Cartoon dog Snoopy dons Chanel and Balenciaga for 75th birthday

2025/03/21 10:00

Paris is hosting a unique exhibition titled "Snoopy In Style: A History of Peanuts and Fashion" to celebrate the 75th anniversary of the Peanuts comic strip. The exhibition runs from March 22 to April 5 showcasing Snoopy's influence on fashion over the decades. Ahead of the exhibition, dozens of dolls of the cartoon beagle dog wearing designer clothes were on display in Paris on Thursday. Visitors can explore original comic strips, designer collaborations, and fashion items featuring Snoopy and his sister Belle in the exhibition. The exhibition highlights partnerships with renowned designers such as Karl Lagerfeld and Giorgio Armani.

Constitutional Court to rule on PM's impeachment on Monday before announcing Pres. Yoon's verdict date

2025/03/20 20:00

Thank you for joining us. I'm Yoon Jung-min. The Constitutional Court will not be ruling on President Yoon Suk Yeol's impeachment this week. But the judicial bench says it will deliver its verdict on Prime Minister Han Duck-soo's impeachment first. Our Correspondent Oh Soo-young explains how this affects the schedule of the Court's top-level case. The Constitutional Court will rule on Prime Minister Han Duck-soo's impeachment on Monday, likely before revealing the date for President Yoon Suk Yeol's impeachment verdict. On Thursday, the Court notified the media that the eight-member bench will deliver its decision, on whether or not to uphold the National Assembly's motion to remove the PM from office. In late December, the National Assembly with an opposition party majority pushed through an impeachment motion against Han. It accused him of abetting President Yoon's December 3rd martial law and refusing to approve the appointments of three Constitutional Court justices. If the Constitutional Court dismisses the impeachment, Han Duck-soo will immediately resume his duties as prime minister and acting president. As Han's case is largely relevant to the President's impeachment, it seems the Court has deliberated on it first. Yoon's ruling date, however, is unlikely to be announced this week, according to one official. As the Court usually gives at least two days of notice in advance, and tends not to schedule ruling dates consecutively, this means the President's impeachment verdict could be delivered on Wednesday at the earliest. For over three weeks, the justices have been convening every day to deliberate on the top-level case -a record period of time compared to past presidential impeachment cases. Park Geun-hye's ruling was out 14 days after her final trial hearing, and Roh Moo-hyun's 11 days. It seems the justices are highly conscious that their constitutional decision could have explosive political and social ramifications, as protests for and against impeachment grow more ferocious by the day. A poll released on Thursday shows 60 percent of some 1-thousand people surveyed believe the Court should uphold Yoon's impeachment, while 35 percent believe the President should return to office. 57 percent believe the Court will choose to impeach Yoon,.. while 34 percent believe his case will be dismissed. Those supporting Yoon's impeachment wish to quickly trigger a snap presidential election, which polls show would largely favor opposition Democratic Party leader Lee Jae-myung. Meanwhile, conservatives including Yoon's supporters are calling for the case to be dismissed, or for the Court to deliver a ruling after Lee Jae-myung's own verdict, on one of his five criminal cases next Tuesday. Experts say the judicial bench is likely fine-tuning the judgment on Yoon's case to ensure it can be broadly accepted by a highly polarised public. With various overlaps in the grounds for impeachment between Yoon and Han's respective cases, the Court's ruling on the PM's trial may provide insights into how the justices are deliberating on the President's impeachment. Oh Soo-young, Arirang News.

[Weather] April-like warmth hits Korea but dusty in western regions

2025/03/20 20:00

The spring cold that gripped much of Korea for the last few days has eased as we are welcoming Spring Equinox today. Temperatures jumped up quite a bit this afternoon, and the morning jacket felt too warm in the afternoon but was needed again for the evening commute. It will feel warmer tomorrow, feeling more like mid-April. Now in terms of air quality, the smog that moved into western regions and parts of Gangwon-do today is forecast to remain through tomorrow. So be sure to keep a face mask handy. Tomorrow morning should be more manageable under sunny skies with most parts beginning the day in single figures. Then there will be a big jump in highs, getting up to 18 degrees Celsius in the capital, and Chuncheon, Daegu and Gyeongju seeing highs of 22 degrees Celsius. By the weekend, it will feel more like the end of April on Sunday at a high of 21 degrees Celsius in the capital. Hopefully the air quality isn't too bad. That's Korea for you, here's a look at the international weather conditions.

S. Korea seeking advances in medical industry using AI and medical tourism

2025/03/20 20:00

An annual medical conference here in Korea showcases how healthcare taps into AI as well as growing international recognition in the industry. Ahn Sung-jin tells us more. AI and healthcare. The combination of these is going beyond implementation, as companies seek to weave them into our daily lives. South Korea's Health Ministry and the Korea Health Industry Development Institute are hosting the annual Medical Korea conference to connect those in the field, and promote discussions on the implications of this. With a need for more healthcare workers and an aging population, AI integration into people's daily lives has become inevitable, and an expert says this is not as a replacement, but as a helper. "There is no doubt that AI is here to stay in the medical industry the people who are concerned or worried about AI are going to struggle in the future as AI becomes more and more intercalated into everything that we do." Alongside the use of smart technology in our everyday lives, Korea is also promoting medical tourism, welcoming those seeking K-beauty healthcare. "An increase in the number of patients visiting Korea for medical purposes implies that not only is our medical technology acknowledged worldwide, but also suggests that we are becoming a focal point for medical tourism in Asia." As Korea receives more international recognition, medical tourists continue to increase with the number soon to exceed 1 million. "Many Korean companies in the beauty and medical industry are here to showcase the latest trends as well as to network and find partners." With more tourists spending on healthcare and reinvigorating the economy, companies are aiming to increase their competitiveness in the field. "Due to Hallyu, Korean healthcare products are garnering more attention, and I hope to share this worldwide." As the country steps up as a medical powerhouse, efforts from stakeholders are set to become more apparent. Ahn Sung-jin, Arirang News.

Finland remains happiest country in world for eighth consecutive year: World Happiness Report

2025/03/20 20:00

Finland has been named the happiest country in the world for the eighth consecutive year. According to the World Happiness Report released on Wednesday, Nordic nations Denmark, Iceland, and Sweden followed closely behind. South Korea ranked 58th out of 147 countries, dropping six spots from last year. The U.S. fell to 24th place, its lowest ranking since the survey began in 2012. Researchers link declining happiness in the U.S. to more people dining alone and note a similar trend in South Korea due to aging and more single-person households.

Trump-Zelenskyy call: Trump proposes running Ukrainian nuclear power plants

2025/03/20 20:00

Ukrainian President Volodymyr Zelenskyy agrees to a partial ceasefire with the Kremlin on energy and infrastructure during talks on the phone with U.S. President Donald Trump. Choi Soo-hyung has the latest. U.S. President Trump and Ukraine's President Zelenskyy have had a direct phone call to talk about a ceasefire between Russia and Ukraine. On Wednesday local time, Trump posted on his social media platform, Truth Social, that the call "to align both Russia and Ukraine in terms of their requests and needs" lasted about an hour and went smoothly. Trump said Zelenskyy also agreed on a partial ceasefire for energy and infrastructure facilities. During the call, Trump suggested that the U.S. could help with nuclear power plant operations using its expertise in the energy sector. "He said that the United States could be very helpful in running those plants with its electricity and utility expertise. American ownership of those plants would be the best protection for that infrastructure and support for Ukrainian energy infrastructure." The White House added that the U.S. will continue to provide intelligence resources to Ukraine to end the war. This means that Trump rejected Putin's demand to stop military support and intelligence sharing with Ukraine. "They reviewed the situation in Kursk and agreed to share information closely between their defense staffs as the battlefield situation evolved." President Zelenskyy also reportedly requested additional air defense systems, including the Patriot missile system and Trump said he would work to find available systems in Europe to support Ukraine. Trump also promised to help ensure that children who were kidnapped or went missing during the war could return to Ukraine. Regarding the partial deal on Tuesday, after the call with Putin, the White House stated that the U.S. position supports a ceasefire for "energy and infrastructure," not just energy infrastructure, as Russia claims. The U.S. will continue negotiations with Russia for a wider ceasefire deal in meetings in Saudi Arabia in the end of this week. Choi Soo-hyung, Arirang News.

Defense ministry calls in Russia's defense attaché to protest KADIZ intrusions by Russian warplanes

2025/03/20 20:00

The defense ministry called in Russian Defense Attaché to South Korea, Colonel Nikolai Marchenko on Thursday to protest Russian military warplanes intruding into South Korea's air defense identification zone, or KADIZ. According to the ministry, the Russian warplanes reportedly entered the KADIZ eight times from March the 11th to the 20th. Earlier, warplanes even flew as close as 20 kilometers to the outer edge of South Korean airspace without responding to the military's attempts at communication. In response, the Air Force scrambled fighter jets in accordance with international law. The defense ministry strongly protested the incidents, and urged measures to prevent any recurrence.

S. Korea-U.S. Freedom Shield joint military exercise wraps up on Thurs. after 11-day run

2025/03/20 20:00

A major military exercise between South Korea and the U.S. came to an end on Thursday after 11 days of comprehensive drills. This year's Freedom Shield was the first under the second Trump administration and featured expanded on-field drills. It also took into account realistic threats such as potential changes in North Korea's military strategy in light of its defense deal with Russia. Meanwhile, North Korea, for its part, condemned the annual training between South Korea and U.S. and test-launched a series of close-range ballistic missiles into the West Sea on the first day of the training but stayed silent in the following days.

[Econ & Biz] Political instability and Trump's protectionist tariff policies: S. Korea's economic growth under threat?

2025/03/20 20:00

The deliberation process at the Constitutional Court takes longer than expected as to the political fate of President Yoon Suk Yeol as it extends into next week. Today, we take a look at its ramifications on the economy. Our economics correspondent Moon Hye-ryeon joins us in the studio. Hye-ryeon, to start off, does the current situation affect South Korea's economic growth projections for the year ahead? As we prepare to wrap up the first quarter of the year, major institutions have come out with economic growth projections for 2025 – and thus far, the outlook looks gloomy. Both the Bank of Korea and the state-run Korea Development Institute have revised their economic growth forecasts downward from their previous projections last November, citing weak domestic demand fueled by political uncertainty. Domestic demand refers to the ​total ​amount ​spent on ​goods and ​services by ​people, ​companies, and the ​government – and low domestic demand can hinder economic growth. In short, everyone is tightening their purse strings, and this was reflected in recent data on consumer sentiment and consumer spending. Consumer sentiment, as measured by the central bank, saw its steepest drop since the COVID-19 pandemic in December with the martial law declaration and subsequent trials. Months down the line, it has yet to recover. So what groups in particular are being hit hard by low domestic demand? Despite the national Seollal holiday in January, which typically boosts spending, consumer spending declined. Rising costs of raw materials and ingredients have only exacerbated the situation, hitting small business owners – particularly restaurants – the hardest. "If political instability drags on, it's hard to predict an economic recovery in the future. So when consumers feel uncertain, they tend to cut back on spending – one of the first things they cut is dining out." This small restaurant, once packed at lunchtime, now sits idle. The owner says sales have plunged since December. "Since December, most reservations have been canceled. At first, sales dropped to about a third of previous levels, but recently, they've plunged to nearly half or even two-thirds." And this is just one of many – according to Statistics Korea, the number of small business owners in the country fell for the first time in January since 2021, alongside a big drop in production in the dining industry. But political instability isn't the only thing placing downward pressure on the country's economy. Tell us how this interplays with other factors. That's right, Jung-min, another big hurdle is the new Trump administration's trade policies. Tariffs levied at a rate of 25 percent now apply to steel and aluminum exports from South Korea to the U.S., and uncertainties surrounding more tariffs to come in April linger. Economists warn that continued political instability can "push back" important economic decisions to be made – not just regarding domestic demand, but also in response to the new Trump administration's protectionist policies which could further strain South Korea's economy. "The uncertainty in the economy will be significantly amplified, and as a result, economic decisions will be pushed back, likely having a considerably negative impact." The government introduced support measures for small business owners and self-employed individuals in December last year, but announced additional measures such as expanding the issuance and usage of Onnuri gift certificates used for purchases at traditional markets last week as challenges persist. As for trade policies, Seoul is pushing for high-level negotiations with Washington, and holding talks with firms to gather industry opinions. However, experts say that a more proactive approach is needed as domestic and international uncertainties converge. "We need to take a more proactive approach if there are U.S. goods or services we plan to purchase, we should buy them in advance, and companies with investment plans should consider moving them up. This could help mitigate the effects of the Trump administration's trade policies. Right now, our economy is facing even greater challenges than in the past, partly due to a lack of strong fiscal policy." Alright, thank you for your report, Hye-ryeon. Thank you for having me.

BOK warns of uncertainties as gov't urges vigilance following Fed's rate freeze

2025/03/20 20:00

The Bank of Korea says the U.S. Fed's rate freeze stands in line with widespread expectations and has warned of mounting risk factors amid geopolitical and trade tensions. Separately, acting President Choi Sang-mok has reiterated calls on economic and financial authorities to maintain close monitoring of markets here and of U.S. trade-related decisions. He also echoed concerns by the central bank about growing external uncertainty over global trade and geopolitical stability given the fresh fighting in the Middle East and continued conflict in Ukraine.

U.S. Fed keeps interest rate steady as Trump's policies incite uncertainty

2025/03/20 20:00

The U.S. Federal Reserve is holding its key rate steady for the second session in a row amid concerns over slower growth and higher inflation as the U.S. adapts to tougher Trump tariffs. Lee Soo-jin reports. The U.S. Federal Reserve has decided to once again keep its benchmark interest rate unchanged, but signaled potential rate cuts in future meetings. In its second monetary policy meeting of the year on Wednesday, the central bank kept its key borrowing rate steady at its current range of 4-point-2-5 percent to 4-point-5 percent. The Federal Open Market Committee has put a pause in its rate cutting cycle since December last year, after carrying out three consecutive reductions. The decision comes as Federal Reserve officials lowered their outlook for economic growth for this year to 1-point-7 percent from 2-point-1 percent in their December projection. " uncertainty today is unusually elevated. As the economy evolves, we will adjust our policy stance in a manner that best promotes our maximum employment and price stability goals." The Fed's goals of maintaining maximum employment and low inflation are often referred to as its "dual mandate." Powell said that the uncertainty comes from the changes that policies, particularly trade,.. but also immigration, fiscal policy and regulation, will bring to the economy. The rate-setting committee, which releases a summary of economic projections after its March, June, September, and December meetings, projected slightly higher unemployment of 4-point-4 percent from 4-point-3 percent by the end of the year. Inflation was also forecast to rise, as personal consumption expenditure, a measure of consumer spending, and core inflation, which excludes energy and food prices, were both revised upward. Powell acknowledged that tariffs have already contributed to the rise in inflation. The Trump administration imposed 25% tariffs on steel and aluminum imports last Wednesday, triggering retaliatory tariffs from Canada and the EU, with reciprocal U.S. tariffs set for April 2nd. But with officials expecting the Fed to implement a total of half a percentage point in rate cuts in 2025, two reductions are likely this year as rate cuts are typically in quarter-point increments. This latest decision keeps the interest rate gap between South Korea and the U.S. at 1-point-75 percentage points, with the Bank of Korea slashing its key interest rate to 2-point-7-5 percent in its last meeting in February. All three major U.S. stock indexes, the Dow Jones, S&P 500, and the Nasdaq, showed an upward trajectory following the Fed's decision. Lee Soo-jin, Arirang News.