Biz community urges unity, economic focus from new President Lee

South Korea's major business organizations on Wednesday called on newly elected President Lee Jae-myung to prioritize national unity and economic revitalization following his victory in the presidential election. Democratic Party candidate Lee was elected to replace former President Yoon Suk Yeol, who was ousted after a failed attempt to impose martial law. Lee assumed office immediately Wednesday, with no transition period. The Korea Chamber of Commerce and Industry extended its congratulations

June 4, 2025

OECD revises down S. Korea's 2025 growth outlook to 1% from 1.5%

The Organization for Economic Cooperation and Development has downgraded its forecast for South Korea's economic growth in 2025 by 0.5 percentage point from its previous estimate to 1 percent, citing mounting uncertainties at home and abroad, the finance ministry said Tuesday. The downward revision marks the second of its kind in less than six months as the organization had reduced its growth forecast for Asia's fourth-largest economy to 1.5 percent in March from the 2.1 percent estimate present

June 3, 2025

Daunting economic tasks lie ahead for new president

The newly elected Korean president will take office amid mounting internal pressures and global headwinds, setting the stage for an aggressive fiscal and industrial policy pivot. The new government inherits a fragile economy with deteriorating fundamentals. Recent data show declines in output, consumption and investment — underscoring a downturn worsened by global shocks and the political turbulence that stemmed from former President Yoon Suk Yeol’s short-lived martial law decree. Candidate Lee

June 3, 2025

[Photo News] BOK–Fed talks on digital finance

Bank of Korea Gov. Rhee Chang-yong (left) and Christopher Waller, a member of the US Federal Reserve Board of Governors, hold a policy dialogue during the 2025 BOK International Conference at the central bank's headquarters in Seoul on Monday. The two policymakers discussed the outlook for stablecoins and central bank digital currencies, and how such digital assets could reshape the global financial system.(Yonhap)

June 2, 2025

Tariff-induced inflation not persistent; rate cuts expected later this year: US Fed governor

US Federal Reserve Gov. Christopher Waller said Monday that he sees room for interest rate cuts later this year amid expectations that sweeping US tariffs are likely to temporarily push up inflation and raise unemployment. Waller, a member of the Board of Governors of the US Federal Reserve System, made the remarks in his keynote speech at the 2025 Bank of Korea International Conference in Seoul on structural shifts and monetary policy. "Given my belief that any tariff-induced inflation will not

June 2, 2025

S. Korea's exports down 1.3% on-year to $57.3 billion in May: data

South Korea's exports dropped 1.3 percent from a year earlier in May, snapping a three-month winning streak, as outbound shipments to the United States sharply went down amid the US President Donald Trump administration's sweeping tariff policies, government data showed Sunday. Outbound shipments came to $57.3 billion last month, compared with $58.02 billion a year ago, according to data compiled by the Ministry of Trade, Industry and Energy. Imports shrank 5.3 percent on-year to $50.3 billion,

June 1, 2025

Seoul shares fall nearly 1% on profit taking, US tariff uncertainty

South Korean stocks finished lower Friday, as investors moved to lock in profits from recent sharp gains amid legal uncertainties surrounding the United States' tariff policies. The local currency fell against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) lost 22.97 points, or 0.84 percent, to close at 2,697.67, ending a two-day winning streak. Trade volume was heavy at 513.39 million shares worth 14.08 trillion won ($10.21 billion), with losers beating winners 487 to 39

May 30, 2025

Time to pivot to China, India and move beyond US: Mirae Asset vice chairman

As cracks emerge in the US-centered investment landscape -- driven by geopolitical uncertainty and waning global confidence -- Mirae Asset Securities Vice Chairman Heo Sun-ho called for a strategic rebalancing toward China and India. Speaking at a global asset allocation forum hosted by Mirae Asset in Seoul on Thursday, Heo said the global financial market has relied heavily on the US as its primary growth engine over the past three years. However, with the return of President Donald Trump and t

May 30, 2025

Lee Jae-myung pushes to split Finance Ministry’s budget powers

Presidential front-runner Rep. Lee Jae-myung of the Democratic Party of Korea has proposed a large-scale restructuring of the Ministry of Economy and Finance, advocating for the separation of the ministry's budget authority from its policy planning function in a bid to decentralize power and strengthen legislative oversight. Speaking during a live YouTube broadcast on Wednesday, Lee argued that “splitting the Finance Ministry’s budget functions is necessary to break its monopoly over financial p

May 29, 2025

BOK slashes growth forecast by half to 0.8%

The Bank of Korea nearly halved its economic growth projection for this year to 0.8 percent on Thursday, reflecting deepening challenges both at home and abroad. In a bid to support the struggling economy, the central bank also delivered a quarter-point base rate cut. The revised estimate for gross domestic product growth, a key measure of economic performance, is down 0.7 percentage point from the BOK’s previous forecast of 1.5 percent made in February. The downgrade factors in the 0.2 percent

May 29, 2025

BOK cuts base rate by 0.25%p amid won’s rally

South Korea's central bank delivered a quarter-point cut on Thursday, on the back of the won's recent appreciation. The Bank of Korea cut the base rate by 0.25 percentage point, lowering it to 2.5 percent. With the decision, the gap between Korea's key rate and the US rate has widened from 1.75 percentage points to 2 percentage points. The BOK implemented a rate cut, supported by recent strength in the Korean won against the greenback. While a wider interest rate gap raises concerns over capital

May 29, 2025

BOK cuts key rate by 25 basis points amid grim GDP growth forecast

South Korea's central bank lowered its benchmark interest rate by a quarter percentage point Thursday, just five days ahead of the country's presidential election, in an effort to prop up economic growth amid sluggish domestic demand and uncertainties stemming from Washington's sweeping tariff scheme. The monetary policy committee of the Bank of Korea slashed the key rate by 25 basis points to 2.5 percent at its rate-setting meeting in Seoul. It marked the fourth reduction since October 2024, wh

May 29, 2025

KEPCO in talks with Vietnam, Saudi Arabia, Turkey for potential power plant deals

The state-run Korea Electric Power Corp. has been in talks with Vietnam, Saudi Arabia, Turkey and other countries over potential nuclear power plant deals, the company said Thursday. KEPCO said a number of countries, including the three, are interested in South Korea's experience and capabilities proven by successfully constructing the Barakah nuclear power plant in the United Arab Emirates, vowing to work to win more export deals. South Korea won a 20 trillion-won ($14.5 billion) contract to bu

May 29, 2025

S. Korea to spend W480b on developing AI-related services in 2025

South Korea will spend some 480 billion won ($349.1 million) this year to develop innovative products and services based on artificial intelligence, such as AI factories, AI chips and self-driving cars, the industry ministry said Wednesday. The Ministry of Trade, Industry and Energy said the investment is aimed at promoting the industrial use of AI to foster new growth engines and advance the country's manufacturing industry. In detail, the ministry will invest 62.7 billion won in developing AI

May 28, 2025

Govt. to extend W250b in loans to auto-parts manufacturers to soften blow from US tariffs

The government will extend a combined 250 billion won ($182.4 million) worth of low-interest loans to small and medium-sized auto-parts manufacturing firms until the end of next year as part of efforts to help buffer shocks from US tariff measures, the industry ministry said Wednesday. Auto-parts manufacturers with a record of exporting eco-friendly vehicles since 2024 can apply for the loan program, which will provide a maximum 500 million won in liquidity support per company, according to the

May 28, 2025