News

Indonesian imports to U.S. to face 19% tariff: Trump

2025/07/16 13:36

Washington announced that it reached a trade agreement with Indonesia, saying it had agreed to a nineteen percent tariff rate on its exports to the United States. Meanwhile, as the European Union proposed its latest retaliatory tariff measure against the U.S., it says it will wait until August first to allow negotiations to continue. Lee Seung-jae has more. U.S. President Donald Trump announced a trade deal with Indonesia on Tuesday, where Washington will impose 19 percent tariffs on goods coming in from the Southeast Asian nation. American goods exported to Indonesia will face no tariffs or non-tariff barriers. "We will pay no tariffs. So they are giving us access into Indonesia, which we never had. That's probably the biggest part of the deal. And the other part is they are going to pay 19% and we are going to pay nothing." The announcement comes after Trump said he finalized the deal after speaking to his Indonesian counterpart President Prabowo Subianto. Trump previously said he would impose a 32 percent reciprocal tariff on Indonesian goods. Also as part of the latest trade deal with the U.S., Indonesia has committed to spending 15 billion dollars on U.S. energy, 4.5 billion dollars on American agricultural goods and 50 aircraft from Boeing. Indonesia becomes the second Asian country to make a deal with the U.S. after Vietnam. Meanwhile, the EU is preparing 83-point-5 billion U.S. dollars worth of retaliatory tariffs on American goods in response to Trump's tariff threats. According to Politico on Monday, the European bloc listed American goods subject to tariffs by the 27-member states. The newly added items include aircraft, industrial machinery and automobiles and auto parts. However,.. the EU expressed its willingness to continue negotiations with the Trump administration, stressing that no retaliatory tariffs will be in place until August 1st. "I can say to you that it is not our intention to come forward with any countermeasures before the 1st of August while negotiations continue." EU's retaliatory tariffs are in response to Trump's warning last week, that if negotiations fail between the U.S. and the European bloc, Washington would impose a 30 percent reciprocal tariff starting next month. Lee Seung-jae, Arirang News.

Defense chief nominee Ahn Gyu-back faces parliamentary confirmation hearing

2025/07/16 13:35

One of the five nominees questioned on Tuesday was defense chief nominee Ahn Gyu-back, who could become the first civilian defense minister in decades, breaking with a tradition of retired military generals taking the post. Our defense correspondent Kim Bo-kyoung tells us more. Five-term lawmaker Ahn Gyu-back faced lawmakers' questions on Tuesday, during the parliamentary confirmation hearing for the post of defense minister. Nominated as the first "civilian" defense chief in 64 years, Ahn is widely expected to lead the transformation of the military that was mobilized during the martial law period. As to fulfill such expectations, he vowed to rebuild the military to earn people's trust. "What we must do now is to hold those accountable for the illegal martial law, correct the wrongdoings of the previous administration, strengthen civilian control to ensure that our military does not become a tool for private power, and rebuild a "military of the people." He added he would reform the military by boldly incorporating advanced technologies, and reorganize the structure to deal with the falling number of troops. Regarding North Korea, he said ministry will support the government's efforts to establish peace on the Peninsula, while pledging to seek sustainable peace based on strength. "I will militarily support the government's efforts to establish peace on the Korean Peninsula. While establishing deterrence based on immense military power, a door for dialogue to ease tensions and build trust should be left open" Ahn was also asked about his views on relationships with allies and neighboring countries. He stated that the Seoul-Washington alliance should be strengthened, and that any discourse on U.S. Forces Korea troop reduction and Washington's thoughts on strategic flexibility should be closely consulted between both parties, as it is not something that one side can unilaterally assert. In terms of China, Ahn said he would seek a cooperative relationship, focusing on national interests. "Regarding China, we need to take into account various factors such as Northern diplomacy, market expansion, and economic interests." Ahn added that the Lee Jae Myung administration will pursue the transfer of the wartime operational control from the U.S. to South Korea based on a strong combined defense posture, and the two countries' agreement on conditions followed by their mutual fulfillment. Kim Bo-kyoung, Arirang News.

Day 2 of Cabinet confirmation hearings: scrutiny intensifies for environment, veterans, and SME minister nominees

2025/07/16 13:34

Confirmation hearings for President Lee's Cabinet picks are entering a decisive stretch this week, as lawmakers scrutinize nominees for key ministries. From climate action to small business policy, candidates laid out their visions while partisan tensions continue to run high. Our Moon Hye-ryeon reports. The National Assembly's confirmation hearing for key Cabinet positions entered its second day on Tuesday, with nominees appearing before lawmakers on related standing committees. Kim Sung-hwan, tapped to lead the Ministry of Environment, pledged to strengthen measures to protect residents from climate-related disasters as the country has seen record rainfall and heat in recent years. "The next five years will be a critical period for laying the groundwork for a transition to a decarbonized 'green' civilization. I will work to overcome the climate crisis hand in hand with the public." He also advocated for a pragmatic energy policy that balances renewable energy with nuclear power — reiterating that he does not support phasing out nuclear energy, despite his past association with such views under the Moon Jae-in administration. Han Seong-sook, the nominee for minister of SMEs and startups, discussed the challenges that small businesses face amid high interest rates, inflation, and sluggish domestic demand, while pointing out the need for a digital transformation. "The rapid acceleration of the AI revolution and digital transformation is shifting the very paradigm of industry — leaving behind businesses unable to adapt. For small businesses and SMEs, digital transformation is no longer optional — it is a prerequisite for survival and growth." Han also addressed growing concerns over Chinese e-commerce platforms such as AliExpress and Temu gaining market share in Korea, and said she would "take necessary measures" to address safety and copyright issues, particularly in the fashion sector. Disputes between ruling and opposition party lawmakers have continued to play out across much of the confirmation hearings for cabinet nominees — with tensions heightening for Kwon Oh-eul, nominee for Minister of Patriots and Veterans Affairs. The People Power Party criticized his lack of experience in veterans' affairs and accused the administration of rewarding loyalty over merit, with Kwon being a former conservative lawmaker who switched sides just ahead of the presidential election. The Democratic Party defended the nomination, saying it reflected the president's will to promote national unity across ideological lines. Despite the clashes, lawmakers did manage to adopt a confirmation report for Bae Kyung-hoon, the nominee for minister of science and ICT, in a rare moment of agreement. The confirmation process will continue with hearings scheduled for the education, justice, and employment and labor ministerial nominees on Wednesday. Moon Hye-ryeon, Arirang News.

[NEWs GEN] Summer Getaways: How Gen Zs are vacationing this summer

2025/07/16 11:33

[NEWs GEN] Summer Getaways: How Gen Zs are vacationing this summer [뉴젠] 가깝고 즉흥적... 달라진 MZ 휴가 트렌드

Lee welcomes return of medical students, asks future doctors to have social responsibility

2025/07/15 23:35

Earlier in the morning, President Lee Jae Myung held a Cabinet meeting, during which he welcomed the return of protesting medical students, while asking future doctors to have social responsibility. A host of revisions were approved at the meeting, including amendments deemed shareholder-friendly. Yoon Jung-min reports. President Lee Jae Myung presided over Tuesday's Cabinet meeting first by noting the decision by medical school students who have been boycotting classes for 17 months to protest the previous administration's medical reform policy, aimed at expanding school enrollment, to return to school. "It's belated, but it's a great relief. I hope the educational authorities expedite necessary follow-up measures. I also ask medical students to ponder upon their social responsibilities as future medical professionals in charge of the health and lives of the people." Among a host of issues addressed at the table, the president noted dire economic conditions, stressing the importance of organizing finances in an "efficient way" so that they can play an "active role" in helping the economy. "I ask you to boldly adjust budgets that have been used in a customary, inefficient and wasteful manner, and to efficiently organize them by broadly reflecting the people's opinions." Approved during the meeting was the promulgation of partial revisions made to the Commercial Act that expand directors' fiduciary duty beyond the company to shareholders to better reflect the interests of small investors. This took effect upon promulgation. It includes a rule that caps voting rights of major shareholders and related parties at 3-percent when electing or dismissing audit committee members. This particular change will take effect a year from now. Also approved were changes to the martial law regulations to ban anyone from blocking lawmakers from entering the National Assembly after martial law has been declared. Additionally, the Cabinet set a certain legal basis for the foreign seasonal worker program, often used in the agricultural or fishing industries, only allowing the state or local governments to get involved in the job of bringing in foreign workers, other than unauthorized entities. The president, who appeared without wearing a tie for the second straight week amid the extreme heat, concluded his opening remarks by asking public officials to do their best to protect people from any heat or rain-related damage. Yoon Jung-min, Arirang News.

Defense chief nominee Ahn Gyu-back faces parliamentary confirmation hearing

2025/07/15 23:34

One of the five nominees questioned on Tuesday was defense chief nominee Ahn Gyu-back, who could become the first civilian defense minister since 1961, breaking with a tradition of retired military generals taking the post. Our defense correspondent Kim Bo-kyoung tells us more. Five-term lawmaker Ahn Gyu-back faced lawmakers' questions on Tuesday, during the parliamentary confirmation hearing for the post of defense minister. Nominated as the first "civilian" defense chief in 64 years, Ahn is widely expected to lead the transformation of the military that was mobilized during the martial law period. As to fulfill such expectations, he vowed to rebuild the military to earn people's trust. "What we must do now is to hold those accountable for the illegal martial law, correct the wrongdoings of the previous administration, strengthen civilian control to ensure that our military does not become a tool for private power, and rebuild a "military of the people." He added he would reform the military by boldly incorporating advanced technologies, and reorganize the structure to deal with the falling number of troops. Regarding North Korea, he said ministry will support the government's efforts to establish peace on the Peninsula, while pledging to seek sustainable peace based on strength. "I will militarily support the government's efforts to establish peace on the Korean Peninsula. While establishing deterrence based on immense military power, a door for dialogue to ease tensions and build trust should be left open" Ahn was also asked about his views on relationships with allies and neighboring countries. He stated that the Seoul-Washington alliance should be strengthened, and that any discourse on U.S. Forces Korea troop reduction and Washington's thoughts on strategic flexibility should be closely consulted between both parties, as it is not something that one side can unilaterally assert. In terms of China, Ahn said he would seek a cooperative relationship, focusing on national interests. "Regarding China, we need to take into account various factors such as Northern diplomacy, market expansion, and economic interests." Ahn added that the Lee Jae Myung administration will pursue the transfer of the wartime operational control from the U.S. to South Korea based on a strong combined defense posture, and the two countries' agreement on conditions followed by their mutual fulfillment. Kim Bo-kyoung, Arirang News.

South Korea rebukes Japan's territorial claim over Dokdo islets

2025/07/15 22:45

Seoul has condemned Tokyo's latest claim over South Korea's Dokdo islets. Our foreign affairs correspondent Oh Soo Young has details. Seoul has called on Japan to immediately retract the territorial claim in Tokyo's latest Defense White Paper over South Korea's easternmost islets of Dokdo. On Tuesday, South Korea's foreign ministry released a statement, voicing strong objections to Tokyo's repeated territorial claim issued in its annual report. "We once again make it clear that any claim by the Japanese government over Dokdo, an integral part of South Korean territory, has no impact whatsoever on our sovereignty. We will respond firmly to any provocation by Japan regarding Dokdo." Published on Monday, the first defense white paper issued under Prime Minister Shigeru Ishiba outlines Tokyo's view of the regional security environment. And once again, it refers to Dokdo as Takeshima, claiming sovereignty over the Korean territory, and marking the waters surrounding Dokdo with blue lines on several maps. Japanese media also revealed on Tuesday that Tokyo's Ministry of Defense for the first time distributed its white paper adapted for children to elementary schools. The booklet labels Dokdo as "Takeshima" and the East Sea as the "Sea of Japan." "Seoul's foreign ministry on Tuesday summoned the Japanese Embassy's minister for political affairs to formally lodge its complaint against Tokyo's latest move." South Korea rejects Japan's ungrounded claims, citing historical records dating back to the 6th century. While Korea was subjugated to Japan's imperial rule before and during World War Two, following Korea's liberation from Japan in 1945, Dokdo has been under Seoul's effective control with the South Korean Coast Guard playing a key role in its defence and management meeting the legal basis for its sovereignty under international law. As mentioned in Japan's latest document, the bilateral dispute remains unresolved. At the same time, amid rising geopolitical tensions, particularly in the Indo-Pacific, Japan for the second year in a row, named South Korea as "an important neighboring country and partner" in addressing shared global challenges. The white paper also states that close coordination between South Korea, Japan, and the United States is essential in addressing regional security concerns. It lists North Korea's advancing missile capabilities, China's regional pressure, and growing Russia–North Korea cooperation as key threats. While Seoul-Tokyo ties spiraled in 2019 due to disputes over historical issues related to Japan's wartime colonisation of Korea, the two governments resumed top-level diplomacy, trade and security cooperation in 2023. Leaders on both sides have committed to pursuing cooperation that looks to the future while separately addressing bilateral sticking points. Oh Soo-young, Arirang News.

EU claims U.S. tariffs are 'absolutely unacceptable,' warns of countermeasures

2025/07/15 22:44

The EU is no exception when it comes to U.S. tariff threats. But the union says it won't be hesitant to take countermeasures against the U.S. if a mutual agreement isn't sealed by the August 1st deadline. Park Jun-han has the details. Beginning with South Korea and Japan, the United States' tariff letters have now been "sent" to 25 countries as of Tuesday, including major trading partners like the European Union and Mexico. Following U.S. President Donald Trump's announcement last Saturday that he would impose 30% tariffs on EU products, the European Union on Monday called the move "absolutely unacceptable and unjustified," warning that countermeasures will be taken against the U.S. if a mutual agreement is not reached by the new August 1st tariffs deadline. "Today we discussed the state of play and prospects for EU-US trade relations, including possible EU countermeasures, which, I must say, member states find absolutely unacceptable and unjustified." President Trump insisted that the letters he wrote on tariff rates constitute "the deals" with U.S. trading partners. Trump, however, left the door open for further trade discussions, despite the fact that the recently proposed tariffs are higher than most had anticipated. Also, when speaking at the White House on Monday during a meeting with NATO Secretary General Mark Rutte, Trump told reporters, "The deals are already made." "The letters are the deals. The deals are made. There are no deals to make. They would like to do a different kind of a deal, and we're always open to talk. We are open to talk, including to Europe." With a new deadline, a new phase of negotiations is expected to begin, possibly leading to a trade war involving retaliatory measures. And global markets are keeping a close eye on how the new negotiations are progressing. South Korea is under pressure to secure a deal, possibly weighing options of opening its agricultural markets to the U.S. In Germany, fears over new tariffs are growing, as trade with the U.S. plays a significant role in the export industry, while Italy's wine producers are seeking new markets in Asia and Africa. Park Jun-han, Arirang News.

STOCK&FX

2025/07/15 22:43

2025. 7. 15. KOREAN STOCK MARKET KOSPI : 3,215.28 ▲13.25 +0.41% KOSDAQ : 812.88 ▲13.51 +1.69% KOSPI200 : 434.78 ▲2.29 +0.53% ASIAN STOCK MARKET NIKKEI225 : 39,678.02 ▲218.40 +0.55% HANG SENG : 24,590.12 ▲386.80 +1.60% SHANGHAI : 3,505.00 ▼14.65 -0.42% WALL STREET (July 14) DOW JONES : 44,459.65 ▲88.14 (+0.20%) NASDAQ : 20,640.33 ▲54.80 (+0.27%) S&P500 : 6,268.56 ▲8.81 (+0.14%) EXCHANGE RATE USD : 1,380.20 (-1.00) JPY : 934.56 (-2.77) CNY : 192.33 (-0.32) EUR : 1,612.42 (+2.22)

Day 2 of Cabinet confirmation hearings: scrutiny intensifies for environment, veterans, and SME minister nominees

2025/07/15 22:41

Confirmation hearings for President Lee Jae Myung's Cabinet picks are entering a decisive stretch this week, as lawmakers scrutinize nominees for key ministries. From climate action to small business policy, candidates are laying out their vision while partisan tensions simmer. Our Moon Hye-ryeon reports. The National Assembly's confirmation hearing for key Cabinet positions entered its second day on Tuesday, with nominees appearing before lawmakers on related standing committees. Kim Sung-hwan, tapped to lead the Ministry of Environment, pledged to strengthen measures to protect residents from climate-related disasters as the country has seen record rainfall and heat in recent years. "The next five years will be a critical period for laying the groundwork for a transition to a decarbonized 'green' civilization. I will work to overcome the climate crisis hand in hand with the public." He also advocated for a pragmatic energy policy that balances renewable energy with nuclear power — reiterating that he does not support phasing out nuclear energy, despite his past association with such views under the Moon Jae-in administration. Han Seong-sook, the nominee for minister of SMEs and startups, discussed the challenges that small businesses face amid high interest rates, inflation, and sluggish domestic demand, while pointing out the need for a digital transformation. "The rapid acceleration of the AI revolution and digital transformation is shifting the very paradigm of industry — leaving behind businesses unable to adapt. For small businesses and SMEs, digital transformation is no longer optional — it is a prerequisite for survival and growth." Han also addressed growing concerns over Chinese e-commerce platforms such as AliExpress and Temu gaining market share in Korea, and said she would "take necessary measures" to address safety and copyright issues, particularly in the fashion sector. Disputes between ruling and opposition party lawmakers have continued to play out across much of the confirmation hearings for cabinet nominees — with tensions heightening for Kwon Oh-eul, nominee for Minister of Patriots and Veterans Affairs. The People Power Party criticized his lack of experience in veterans' affairs and accused the administration of rewarding loyalty over merit, with Kwon being a former conservative lawmaker who switched sides just ahead of the presidential election. The Democratic Party defended the nomination, saying it reflected the president's will to promote national unity across ideological lines. Despite the clashes, lawmakers did manage to adopt a confirmation report for Bae Kyung-hoon, the nominee for minister of science and ICT, in a rare moment of agreement. The confirmation process will continue with hearings scheduled for the education, justice, and employment and labor ministerial nominees on Wednesday. Moon Hye-ryeon, Arirang News.

[Weather] Heavy rain forecast over western regions tomorrow

2025/07/15 22:40

With the whole country cloudy today, it has been raining occasionally. Between tomorrow and Thursday, there will be strong and heavy rain around the western regions. It will pour as much as 200 millimeters over the southern parts of Gyeonggi-do Province and the west coast of Chungcheongnam-do Province for two days, and there will be 150 millimeters over the inland areas of central and southern Gangwon-do Province and Chungcheongbuk-do Province. The heat wave will slow down due to rain. The daytime temperature stayed at 28 degrees Celsius in Seoul today and it will stay at below 30 degrees in most areas for a while. Tomorrow morning will start at under 25 degrees all over the country. Highs will move up to 28 degrees in Seoul, Gwangju, Daegu and Busan, 27 degrees in Chuncheon and Daejeon. Summer heat will stay cooler with rain on and off until Saturday. That's all for Korea. Here are the weather conditions around the world.

Container shipping costs to U.S. jump over 20% in June

2025/07/15 22:39

Container shipping costs to the United States rose sharply last month dued to increased shipments to the country. According to the Korea Customs Service on Tuesday, the average shipping cost for a 40-foot container from South Korea to the U.S. east coast climbed about 23 percent in June from the previous month, reaching 6-point-7 million won or roughly 5 thousand U.S. dollars. Rates to the west coast also jumped more than 16 percent. A Korea Customs official said the surge in freight rates was driven by increased shipments to the U.S., but costs remain volatile due to ongoing tariff-related uncertainties.

Farmers concerned amid U.S. tariff negotiations, how can gov't keep all sectors happy?

2025/07/15 22:39

Now as for South Korea Following the Trade Minister's comments on the agricultural sector possibly feeling pain due to tariffs negotiations with U.S., the nation's farmers are striking back. But an expert says government can prevent farmers from suffering a direct impact. Our Kim Do-yeon reports. The prospect of a 25 percent reciprocal U.S. tariff on Korean goods starting August 1st is putting the pressure on Seoul. In a briefing earlier this week, Trade Minister Yeo Han-koo suggested "strategic decisions" may even be needed on agriculture always a sensitive topic when it comes to trade. He has said, "There's never been a trade negotiation where agriculture didn't come with pain. But through these processes, our industrial competitiveness has grown. We have areas where we can show flexibility." So far no specifics have been announced but according to reports the U.S. is demanding that Korea allow imports of beef over 30 months old, increase purchases of rice, permit imports of genetically modified crops such as potatoes, and ease quarantine measures on fruits such as apples. Yeo's comments led to farmers' striking back. The Korean successor Advanced Farmers Federation announced an emergency rally in front of the Presidential Office on Wednesday, accusing Seoul of planning to once again sacrifice agriculture for the sake of bigger industrial deals. The Korean Peasants League added "We cannot eat cars or semiconductors. If the government keeps caving to U.S. pressure, the people will respond — just like they did during the anti-FTA protests and the candlelight vigils." They also warned that with grain self-sufficiency below 20 percent, farm incomes stagnant, and over 70 percent of farm heads aged over 60, any deeper market opening could threaten Korea's food security and even national security. An expert says to ease the concerns existing food imports could be restructured. "The government needs to tell them that it's diversifying import routes. That means much of Australian and Canadian beef coming in will be from the U.S. Therefore, domestic agricultural and livestock industries won't be affected." In the end, the farmers will have to wait and see whether their voices were heard when the results of the trade negotiations are announced. Kim Doyeon, Arirang News.

Trump pressures Russia with military aid to Kyiv, '50-day war deadline'

2025/07/15 22:38

The Trump administration is ramping up pressure on Russia, announcing major military aid for Ukraine and giving Moscow a deadline to reach a peace deal within 50 days, or face economic sanctions. Our Park Kun-woo reports. U.S. President Donald Trump has announced large-scale military support to Ukraine ---worth billions of dollars ---via NATO members. The announcement was made during a meeting with NATO chief Mark Rutte at the White House on Monday. "They're going to deliver the weapons and they're going to pay for 100% of the weapons. We're going to be doing that with NATO and it's fully approved." Top-of-the-line weapons, including Patriots, are reportedly set to be delivered immediately to the frontlines of the war. Military support was also confirmed by the NATO leader. "We will do whatever it takes for Ukraine to be as strong as possible when peace deals have taken place, or these negotiations will start to be the best possible place at that moment." Ukrainian President Volodymyr Zelenskyy expressed gratitude for such support. "I am grateful to President Trump for his readiness to support the protection of our people's lives." Along with the military aid, Trump also set a deadline for Russia to reach a peace deal in 50-days, or else face harsh economic consequences with "very severe tariffs." The White House later clarified that it meant 100% tariffs on Russia and secondary sanctions on countries that buy Russian oil, like China and India. However, not everyone is on board with the announcement. Some, including Ukrainian independent MP Mariana Bezuhla, criticized Trump's announcement as an "empty game" unlikely to have any real impact on Russia. And though the Kremlin has not issued an official response, Russian Senator Konstantin Kosachev said that much can change in 50 days, adding that Trump's remarks on Ukraine so far have amounted to "nothing." Park Kun-woo, Arirang News.

South Korea rebukes Japan's territorial claim over Dokdo islets

2025/07/15 22:37

While South Korea and Japan are working to build a partnership that looks toward the future, Tokyo's continued territorial claims over the Dokdo islets refuel bilateral tensions. Its latest defence white paper has triggered a strong reaction from Seoul. Oh Soo-young has more. Seoul has called on Japan to immediately retract the territorial claim in Tokyo's latest Defense White Paper over South Korea's easternmost islets of Dokdo. On Tuesday, South Korea's foreign ministry released a statement, voicing strong objections to Tokyo's repeated territorial claim issued in its annual report. "We once again make it clear that any claim by the Japanese government over Dokdo, an integral part of South Korean territory, has no impact whatsoever on our sovereignty. We will respond firmly to any provocation by Japan regarding Dokdo." Published on Monday, the first defense white paper issued under Prime Minister Shigeru Ishiba outlines Tokyo's view of the regional security environment. And once again, it refers to Dokdo as Takeshima, claiming sovereignty over the Korean territory, and marking the waters surrounding Dokdo with blue lines on several maps. Japanese media also revealed on Tuesday that Tokyo's Ministry of Defense for the first time distributed its white paper adapted for children to elementary schools. The booklet labels Dokdo as "Takeshima" and the East Sea as the "Sea of Japan." "Seoul's foreign ministry on Tuesday summoned the Japanese Embassy's minister for political affairs to formally lodge its complaint against Tokyo's latest move." South Korea rejects Japan's ungrounded claims, citing historical records dating back to the 6th century. While Korea was subjugated to Japan's imperial rule before and during World War Two, following Korea's liberation from Japan in 1945, Dokdo has been under Seoul's effective control with the South Korean Coast Guard playing a key role in its defence and management meeting the legal basis for its sovereignty under international law. As mentioned in Japan's latest document, the bilateral dispute remains unresolved. At the same time, amid rising geopolitical tensions, particularly in the Indo-Pacific, Japan for the second year in a row, named South Korea as "an important neighboring country and partner" in addressing shared global challenges. The white paper also states that close coordination between South Korea, Japan, and the United States is essential in addressing regional security concerns. It lists North Korea's advancing missile capabilities, China's regional pressure, and growing Russia–North Korea cooperation as key threats. While Seoul-Tokyo ties spiraled in 2019 due to disputes over historical issues related to Japan's wartime colonisation of Korea, the two governments resumed top-level diplomacy, trade and security cooperation in 2023. Leaders on both sides have committed to pursuing cooperation that looks to the future while separately addressing bilateral sticking points. Oh Soo-young, Arirang News.

President Lee officially invites 20 APEC member states to summit in Gyeongju

2025/07/15 22:35

Tonight, we have an update on the APEC summit, which is scheduled to take place in South Korea later this year. President Lee Jae Myung has officially invited leaders of member economies, and the dates for the summit are now set. Our Presidential Office correspondent Song Yoo-jin has more. The leaders of 20 Asia-Pacific Economic Cooperation member states have been officially invited to this year's APEC summit, set to take place in the South Korean city of Gyeongju from October 31st to November 1st. Presidential spokesperson Kang Yu-jung told reporters on Tuesday that President Lee Jae Myung's invitation letters were sent on Monday through each country's diplomatic mission. "In his letter, President Lee said this year's summit, under the theme 'Building a Sustainable Tomorrow,' will focus on strengthening regional connectivity, advancing digital innovation, and promoting prosperity. He expressed hope that these discussions would bear fruit at the summit." Among the APEC members are the United States, China, and Russia, whose leaders are drawing particular attention over whether they will attend in person. Kang said the final list of participants will be announced once it's confirmed. There's also speculation that North Korean leader Kim Jong-un might be invited. Just a day before, during his confirmation hearing at the National Assembly, Unification Minister nominee Chung Dong-young said he would work to create momentum toward extending an invitation to Kim. When asked about this, the Presidential Office did not give a direct answer. "North Korea is not an APEC member, so it was not among the 20 states invited or sent letters." Leading up to the two-day summit, South Korea plans to hold the APEC Senior Officials' Meeting and a joint foreign and trade ministers' meeting in the last week of October. Also scheduled are a range of business events, including the APEC Business Advisory Council and CEO Summit. "The Presidential Office says it has set up a dedicated task force and will do everything it can to ensure a successful summit that contributes to growth across the Asia-Pacific region. Song Yoo-jin, Arirang News.

S. Korea holds rates, braces for tariffs: What’s next for the economy?

2025/07/15 21:35

Welcome to Within The Frame where we bring the most pressing issues across the globe into focus, I'm Kim Mok-yeon. South Korea's economic policy is standing at a crossroads. The Bank of Korea's latest decision to hold its base rate at 2.5% — despite slowing domestic demand — reflects a growing tug-of-war between financial stability and the need to jumpstart growth. Household debt continues to climb, real estate markets are showing signs of overheating, and uncertainty from abroad is only adding fuel to the fire. At the center of those external risks is Washington's renewed tariff push. With an August 1 deadline looming, Korea now faces the prospect of sector-specific U.S. tariffs before a broader agreement is in place — a scenario that worries export-dependent industries. To explore these challenges further, we're joined by experts in the studio. is Kwak Jun-hee, Assistant Professor of Economics at Sogang University. Welcome. And to my is Sung Soo Eric Kim, CEO at Datacrunch Global and adjunct Professor at Yonsei Graduate School of Business. Good to see you. 1. (KWAK) Let's start with the Bank of Korea's latest policy move. What is your assessment of the decision to hold the base rate at 2.5% in July, despite previous easing moves? 2. (KWAK) Given the central bank's pause, what does this signal about the Bank of Korea's policy priorities — is it leaning toward financial stability rather than growth at this stage? What should the central bank prioritize going forward? 3. (KIM) With interest rates still high and debt levels rising, what risks do you see for Korea's financial system and for companies trying to borrow money? 4. (KIM) In light of this cautious macro environment, how are Korean firms responding to the Bank's rate stance and regulatory signals? 5. (KWAK) Zooming out to international dynamics, given the historic 2% interest rate gap with the U.S., how much room does Korea really have for further independent rate cuts without risking capital outflow? 6. (KWAK) Now turning to U.S. tariffs, the August 1 deadline is looming. What economic risks does Korea face if the U.S. imposes sector-specific tariffs before a full agreement is finalized? 7. (KIM) In order to resolve this, Seoul is now pushing for a so-called phased landing zone approach to negotiating security and economic issues with the U.S. How effective do you find this approach in mitigating business uncertainty? 8. (KIM) Building on that, could elements like digital services, AI collaboration, and regulatory flexibility realistically be used as leverage in a "package deal" with the U.S.? 9. (KWAK) Given the external uncertainty Korea faces from potential U.S. tariffs, can tools like supplementary budgets or consumer coupons genuinely help cushion Korea from looming external economic shocks? 10. (KIM) And finally, how can Korean companies strategically position themselves during this volatile negotiation period to minimize tariff exposure and maintain U.S. market access?

Lee welcomes return of medical students, asks future doctors to have social responsibility

2025/07/15 20:37

President Lee Jae Myung has shared his words of relief in response to news that Korea's medical students will be returning to schools ending a prolonged protest over the previous administration's efforts to expand medical school seats. Our correspondent Yoon Jung-min covers these remarks and more from his latest Cabinet meeting. President Lee Jae Myung presided over Tuesday's Cabinet meeting first by noting the decision by medical school students who have been boycotting classes for 17 months to protest the previous administration's medical reform policy, aimed at expanding school enrollment, to return to school. "It's belated, but it's a great relief. I hope the educational authorities expedite necessary follow-up measures. I also ask medical students to ponder upon their social responsibilities as future medical professionals in charge of the health and lives of the people." Among a host of issues addressed at the table, the president noted dire economic conditions, stressing the importance of organizing finances in an "efficient way" so that they can play an "active role" in helping the economy. "I ask you to boldly adjust budgets that have been used in a customary, inefficient and wasteful manner, and to efficiently organize them by broadly reflecting the people's opinions." Approved during the meeting was the promulgation of partial revisions made to the Commercial Act that expand directors' fiduciary duty beyond the company to shareholders to better reflect the interests of small investors. This took effect upon promulgation. It includes a rule that caps voting rights of major shareholders and related parties at 3-percent when electing or dismissing audit committee members. This particular change will take effect a year from now. Also approved were changes to the martial law regulations to ban anyone from blocking lawmakers from entering the National Assembly after martial law has been declared. Additionally, the Cabinet set a certain legal basis for the foreign seasonal worker program, often used in the agricultural or fishing industries, only allowing the state or local governments to get involved in the job of bringing in foreign workers, other than unauthorized entities. The president, who appeared without a tie for the second straight week amid the extreme heat, concluded his opening remarks by asking public officials to do their best to protect people from any heat or rain-related damage. Yoon Jung-min, Arirang News.

Defense chief nominee Ahn Gyu-back faces parliamentary confirmation hearing

2025/07/15 20:35

And while we await those confirmation hearings scheduled for tomorrow the defense minister nominee the first civilian to be tapped for the post in over 60 years also took the stand today to share his thoughts on rebuilding trust for strength. Our defense correspondent Kim Bo-kyoung covers his remarks. Five-term lawmaker Ahn Gyu-back faced lawmakers' questions on Tuesday, during the parliamentary confirmation hearing for the post of defense minister. Nominated as the first "civilian" defense chief in 64 years, Ahn is widely expected to lead the transformation of the military that was mobilized during the martial law period. As to fulfill such expectations, he vowed to rebuild the military to earn people's trust. "What we must do now is to hold those accountable for the illegal martial law, correct the wrongdoings of the previous administration, strengthen civilian control to ensure that our military does not become a tool for private power, and rebuild a "military of the people." He added he would reform the military by boldly incorporating advanced technologies, and reorganize the structure to deal with the falling number of troops. Regarding North Korea, he said ministry will support the government's efforts to establish peace on the Peninsula, while pledging to seek sustainable peace based on strength. "I will militarily support the government's efforts to establish peace on the Korean Peninsula. While establishing deterrence based on immense military power, a door for dialogue to ease tensions and build trust should be left open" Ahn was also asked about his views on relationships with allies and neighboring countries. He stated that the Seoul-Washington alliance should be strengthened, and that any discourse on U.S. Forces Korea troop reduction and Washington's thoughts on strategic flexibility should be closely consulted between both parties, as it is not something that one side can unilaterally assert. In terms of China, Ahn said he would seek a cooperative relationship, focusing on national interests. "Regarding China, we need to take into account various factors such as Northern diplomacy, market expansion, and economic interests." Meanwhile, Ahn added that the Lee Jae Myung administration is aiming to transfer the wartime operational control from the U.S. to Korea within Lee's term. Though the top office made it clear it is Ahn's personal view, it said it is looking into the matter. Kim Bo-kyoung, Arirang News.

Day 2 of Cabinet confirmation hearings: scrutiny intensifies for environment, veterans, and SME minister nominees

2025/07/15 20:20

The parliament ushered in a second day of confirmation hearings for nominees of the president's first cabinet with his picks for environment and SMEs sharing their policy directions. Our political correspondent Moon Hye-ryeon starts us off. The National Assembly's confirmation hearing for key Cabinet positions entered its second day on Tuesday, with nominees appearing before lawmakers on related standing committees. Kim Sung-hwan, tapped to lead the Ministry of Environment, pledged to strengthen measures to protect residents from climate-related disasters as the country has seen record rainfall and heat in recent years. "The next five years will be a critical period for laying the groundwork for a transition to a decarbonized 'green' civilization. I will work to overcome the climate crisis hand in hand with the public." He also advocated for a pragmatic energy policy that balances renewable energy with nuclear power — reiterating that he does not support phasing out nuclear energy, despite his past association with such views under the Moon Jae-in administration. Han Seong-sook, the nominee for minister of SMEs and startups, discussed the challenges that small businesses face amid high interest rates, inflation, and sluggish domestic demand, while pointing out the need for a digital transformation. "The rapid acceleration of the AI revolution and digital transformation is shifting the very paradigm of industry — leaving behind businesses unable to adapt. For small businesses and SMEs, digital transformation is no longer optional — it is a prerequisite for survival and growth." Han also addressed growing concerns over Chinese e-commerce platforms such as AliExpress and Temu gaining market share in Korea, and said she would "take necessary measures" to address safety and copyright issues, particularly in the fashion sector. Disputes between ruling and opposition party lawmakers have continued to play out across much of the confirmation hearings for cabinet nominees — with tensions heightening for Kwon Oh-eul, nominee for Minister of Patriots and Veterans Affairs. The People Power Party criticized his lack of experience in veterans' affairs and accused the administration of rewarding loyalty over merit, with Kwon being a former conservative lawmaker who switched sides just ahead of the presidential election. The Democratic Party defended the nomination, saying it reflected the president's will to promote national unity across ideological lines. Despite the clashes, lawmakers did manage to adopt a confirmation report for Bae Kyung-hoon, the nominee for minister of science and ICT, in a rare moment of agreement. The confirmation process will continue with hearings scheduled for the education, justice, and employment and labor ministerial nominees on Wednesday. Moon Hye-ryeon, Arirang News.