South Korean stocks dive nearly 4% following US trade deal
LISA KIM and JADA NAGUMO
TOKYO -- South Korean stocks fell sharply on Friday, recording their biggest percentage decline in four months due to investor concerns about the downsides of the country's trade deal with the U.S. and disappointment over a domestic tax reform plan.
The benchmark KOSPI extended its losses from the previous day and closed down 3.9%, marking its biggest pullback since April 7. Big tech names tumbled, led by SK Hynix's over 5% drop. Samsung Electronics and LG Energy Solution also ended the day lower.
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The Diplomat
2 hours ago
- The Diplomat
How Bangladesh is Beckoning South Korean Capital
By leveraging its robust population, strategic geographic location, and a clear vision for digital transformation, Bangladesh is positioning itself as a transformative hub. Chief Adviser of Bangladesh's interim government Muhammad Yunus (right) shakes hands with Park Young-sik, South Korean ambassador in Bangladesh, during a meeting at Yunus' office in Dhaka, Bangladesh, November 4, 2024. Often overshadowed by its larger neighbors, Bangladesh is quietly positioning itself as a strategic economic power by attracting foreign direct investment (FDI). China, Bangladesh's largest trading partner, currently leads the charge with regard to investing in the country. It has announced plans to invest in two new special economic zones tailored for Chinese investors in manufacturing products such as textiles, ceramics, and renewable energy. However, South Korea's growing footprint in Bangladesh signals a greater strategic alignment that leverages Bangladesh's aspiration for digital transformation and both countries' desire for economic growth. With investments totaling around $1.56 billion, South Korea is currently ranked as Bangladesh's third-largest source of FDI. Its ranking has been improving year-on-year since 2023. This upward trend highlights Bangladesh's increasing appeal to South Korean investors. Political Challenges Amid Economic Potential Protests and unrest in 2024 led to the resignation of Bangladesh's longtime Prime Minister Sheikh Hasina and the appointment of Nobel laureate Muhammad Yunus as head of a caretaker government. While this political upheaval initially triggered hesitation among foreign investors, the subsequent promise of reforms under Yunus' government has resulted in renewed interest in the country, as evident from the near-2,500 participants in Bangladesh's Investment Summit 2025. Assuming Bangladesh sustains its current reform-minded trajectory, it will present a compelling value proposition for foreign capital, particularly from South Korea. Bangladesh's strategic location, young population, and growing economic potential continue to stand out despite its political challenges, with a focus on sectors like technology, renewable energy, and infrastructure. South Korean Investments in Bangladesh's Emerging Sectors South Korean investors have made significant inroads into Bangladesh's manufacturing and renewable industries, as well as emerging sectors like semiconductors and digital electronics. This diversification reflects a strategic move by Korean firms to tap into Bangladesh's evolving industrial landscape and growing consumer market. Recent developments underscore these trends. In April 2025, a delegation of Korean investors, including officials from LG, visited Bangladesh's Korean Export Processing Zone (KEPZ) in Chattogram. The KEPZ is a flagship economic zone hosting manufacturing and green energy production facilities. Notably, manufacturing conglomerate Youngone formalized investments in KEPZ's textile and solar energy facilities. Just one month earlier, in March 2025, Hyundai announced a partnership with DX Group to enter the Bangladeshi market for consumer electronics and appliances. Similarly, Samsung has been working with Bangladesh's Fair Group to manufacture electronics, including mobile phones, televisions, and air conditioners. These ventures signal Korea's growing footprint in Bangladesh in manufacturing, technology, and other industries, signaling a long-term commitment to the country's economic development. Bilateral Innovation Supporting Bangladesh's Growth Both the South Korean and Bangladeshi governments have been supportive of the startup ecosystem in Bangladesh. This can be seen through initiatives like the 2023 launch of a virtual desk platform in Bangladesh's embassy in Korea to attract IT-specific FDI to Bangladesh, as well as a joint effort between Bangladesh's ICT Division and the Korea Productivity Center to establish a mentoring initiative aimed at facilitating startup growth in Bangladesh. Official collaborations within other sectors, including healthcare, and the establishment of cross-border governmental standards, underscore the commitment of both governments to bilateral economic growth. These supportive governance frameworks have spurred the growth of cross-border startup ventures. One example is the Korean-founded food-tech startup, MFM Korea, which provides job opportunities for Bangladeshi women through resource recycling. Similarly, Chardike, a Bangladesh-created Korean products platform, highlights this organic interest in cross-border startup development. Beyond just startups, established enterprises are also leveraging the power of cross-border partnerships. In April 2025, Global Brand PLC, a Bangladesh-based IT product distributor, and Hyosung TNS, a Korean-based fintech provider, announced a partnership to modernize Bangladesh's banking infrastructure. Previously, South Korean giant Woori Bank also entered into partnerships with digital wallet startup bKash and Bankcomparebd, a Bangladesh product recommendation site. Unlocking Future Growth Bangladesh's economic evolution extends beyond its manufacturing roots, with its desire to transform into a digital economy presenting opportunities for South Korean and Bangladeshi startups alike, with key use-cases to include digital payments, e-commerce, and smart city infrastructure. A prime example of these synergies is Mirsharai, located in southeast Bangladesh, which is being developed into a National Special Economic Zone (NSEC) with a smart city emphasis by leveraging South Korea's expertise in smart city development. South Korea envisions transforming Mirsharai by 2028, drawing inspiration from successful coastal cities like Ulsan and Shenzhen, which have grown into significant industrial hubs and economic drivers. Key special economic zones like Mirsharai offer significant potential for startups and large enterprises alike. The relative proximity to both Chittagong's seaport and airport enables the city to be a self-sustaining digital ecosystem, with parallel growth tracks in both traditional goods and digital services. This example highlights just how important it will be for Bangladesh to leverage its digital economy alongside its manufacturing-based one. Therefore, it is key for Bangladesh to partner with Korean startups and enterprises alike to fully ensure economic growth and digital modernization. Conclusion In an increasingly complex and interconnected Indo-Pacific, Bangladesh is emerging as a dynamic and strategic partner, poised to play a significant role in Asia's next growth narrative. By leveraging its robust population, strategic geographic location, and a clear vision for digital transformation, Bangladesh is positioning itself as a transformative hub. For South Korea, deepening this engagement offers a vital opportunity to diversify its regional economic strategy, foster innovation, and contribute to the stability and prosperity of a crucial South Asian nation. This burgeoning partnership between Seoul and Dhaka exemplifies a mutually beneficial relationship that transcends trade, pointing toward a future of shared economic progress and strategic alignment in the Indo-Pacific. The views expressed in this article are personal. It does not contain information of an official nature, nor does the content represent the official position of any government, organization, or group.
Nikkei Asia
3 hours ago
- Nikkei Asia
Thailand, Cambodia agree to let ASEAN teams monitor ceasefire
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Asahi Shimbun
7 hours ago
- Asahi Shimbun
South Korean investigators seek arrest of wife of jailed ex-President Yoon
Kim Keon Hee, the wife of South Korea's ousted former President Yoon Suk Yeol, arrives at the special prosecutor's office in Seoul, South Korea, Aug. 6, 2025. (AP Photo) SEOUL--South Korean investigators on Thursday requested a warrant to arrest the wife of jailed former President Yoon Suk Yeol, a day after questioning her over suspicions including bribery, stock manipulation and political influence-peddling. Yoon, for the second time in a week, resisted an attempt to compel him to appear for questioning in his wife's case, forcing prison officials to abandon their efforts after an hourlong struggle due to concerns of injury, the investigators said. The detention warrant for Yoon expires Thursday. The investigation targeting Yoon's wife, Kim Keon Hee, is one of three separate special prosecutor probes launched under the government of new liberal President Lee Jae Myung related to Yoon, who was removed from office in April and rearrested last month over his brief imposition of martial law in December. The investigation team questioned Kim for about seven hours on Wednesday on various allegations, including claims that Yoon and Kim exerted undue influence over the conservative party's candidate nominations for a parliamentary by-election in 2022. Kim is also suspected of receiving a necklace and other gifts through a fortuneteller acting as an intermediary for a Unification Church official seeking business favors, and of possible involvement in a stock price manipulation scheme. The team said they listed multiple charges in the warrant request for Kim, including violations of financial market and political funding laws and acceptance of bribes. In her brief comments to reporters as she appeared for questioning on Wednesday, Kim issued a vague apology for causing public concern but also hinted that she would deny the accusations against her, calling herself 'someone insignificant.' Yoon, who faces a high-stakes trial on rebellion and other charges, previously resisted an attempt by investigators on Friday last week to bring him to their office for questioning over his wife. Investigators said he took off his prison uniform and lay down on the floor of his cell in his underwear until they gave up. Investigators were less specific about Yoon's actions on Thursday but said he 'strongly resisted' and that there were concerns that he might be injured if the struggle continued. Yoon's lawyers criticized the repeated attempts to force him to appear for questioning, stating that he has already made clear his intention to exercise his right to remain silent and accusing investigators of infringing upon his rights in order to publicly shame him. Yoon's ill-fated imposition of martial law on Dec. 3 came during a seemingly routine standoff with the liberals, whom he labeled as 'anti-state' forces abusing their legislative majority to obstruct his agenda. Some political opponents have questioned whether the conservative leader's actions were at least partly motivated by growing allegations against his wife, which hurt his approval ratings and gave political ammunition to his rivals. While in office, Yoon repeatedly dismissed calls to investigate his wife, denouncing them as baseless political attacks. After winning the early presidential election in June, new liberal President Lee Jae Myung approved legislation to launch sweeping special investigations into Yoon's martial law debacle, the allegations against his wife, and the 2023 drowning death of a marine during a flood rescue operation, an incident the liberals claim Yoon's government tried to cover up.
