South Korea's central bank cuts borrowing costs to nurse the sluggish economy
SEOUL, South Korea (AP) — South Korea's central bank cut its key interest rate and sharply lowered its growth outlook for the country's economy in 2025, as it moved Thursday to counter U.S. President Donald Trump's tariff hikes and weak domestic demand worsened by recent political turmoil.
Following a monetary policy meeting, the Bank of Korea cut its benchmark interest rate by a quarter percentage point to 2.5%. It was its fourth cut since October, when it began lowering borrowing costs for the first time in years to support a weakening economy. The bank slashed its 2025 growth outlook to 0.8%, nearly halving its previous projection of 1.5% announced in February.
Share prices jumped, with the Kospi gaining 1.7%.
Although trade tensions have recently eased, the global economy is still expected to slow due to the lingering effects of increased tariffs. U.S.-China friction over trade and geopolitical uncertainties will continue to weigh on markets, the bank said in a statement.
South Korea's domestic economic activity remained sluggish in April following a contraction in the first quarter driven by weak consumption and business investment, the bank said. It said job creation in manufacturing and other sectors was slow.
Since beginning his second term, Trump has vowed to slap huge new tariffs on foreign products entering the United States, including those from Mexico, Canada and China, which he insists will create more domestic jobs and shrink the federal deficit.
In recent weeks, South Korea has sent trade officials to Washington to discuss the Trump administration's trade measures, including reciprocal tariffs and potential product-specific duties on semiconductors and cars, which are major exports for the country's trade-dependent economy.
A decision by a U.S. federal court saying Trump lacks the legal authority to impose such tariffs could upset his plans, but the White House has appealed and it's unclear what will happen in the longer run.
Experts say South Korea's leverage in trade talks and its ability to tackle domestic economic challenges have been undermined by political instability after former President Yoon Suk Yeol's ill-fated imposition of martial law in December. Yoon was formally ousted from office in April, setting the stage for a snap presidential election next week.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
28 minutes ago
- Bloomberg
Musk's Drug Use on Campaign Trail Generated Concern, Report Says
Elon Musk was using drugs more heavily than previously known while on the campaign trail to help elect Donald Trump president, worrying some people close to the mercurial billionaire, the New York Times reported. The chief executive officer of Tesla Inc. and SpaceX traveled with a medication box that held about 20 pills and was taking so much ketamine that it was affecting his bladder, according to the report, which cited private messages and interviews with people who know or work with Musk. He also took Ecstasy and psychedelic mushrooms on occasions, the New York Times said.
Forbes
28 minutes ago
- Forbes
Forbes Daily: Supreme Court Gives A Boost To Oil And Gas Billionaires
J.K. Rowling brought magic to multiple generations with her wizarding world—and it's made her a billionaire, again, despite plenty of recent controversy. The Harry Potter author is now worth $1.2 billion, according to Forbes estimates, after previously falling off the Billionaires List in 2012 as a result of charitable giving. That's in spite of the fact that Rowling has placed herself at the center of a culture war, frequently posting anti-transgender rhetoric on social media. Since 2020, she has earned more than $80 million per year from the sales of her books and the vast litany of Potterverse brand extensions. The staying power of the franchise is only set to continue, with a new HBO Max series adaptation of the books going into production this summer. President Donald Trump's 'Liberation Day' tariffs will stay in effect for now, a federal appeals court ruled, despite a Wednesday ruling from the Court of International Trade that they were unlawful, plus a second, similar ruling from a federal court Thursday. But if an appeals court or the Supreme Court, where the case is likely to end up, ultimately sides with the international court and says they're unlawful, the Trump Administration will have to refund any tariffs collected. MORE: Nvidia briefly became the world's most valuable company again Thursday after its latest earnings report, surpassing Microsoft, before falling back into No. 2. The AI chip giant's stock surged post-earnings and after the international trade court's tariff ruling, helping lift the broader market, before indexes ended the day at more modest gains. Meanwhile, Treasury Secretary Scott Bessent said trade talks between China and the U.S. have stalled and a direct call between the two countries' presidents may be needed to close a deal, leading U.S. stock futures to drop slightly in early trading on Friday. After their meeting in Geneva earlier this month, U.S. and Chinese officials announced they would significantly cut back tariffs placed on each other's goods for at least 90 days, while both sides work on a trade agreement. Despite President Trump repeatedly attacking Federal Reserve Chairman Jerome Powell, the pair met Thursday at Trump's request—Powell's first meeting with a sitting president since May 2022. Trump has expressed frustration with the Fed's hesitation to lower interest rates, but Powell was insistent that the Fed would determine monetary policy based on economic data, according to a statement from the central bank. The SEC dropped a lawsuit against Binance on Thursday, days after the crypto exchange began listing a stablecoin created by World Liberty Financial, one of President Donald Trump's blockchain ventures. Binance admitted in a November 2023 plea deal to anti-money laundering and sanctions violations, agreeing to pay $4 billion, and it's not the only Trump crypto partner to have benefited personally from his administration. The Supreme Court gave a boost to oil and gas companies as it sided Thursday with a railway company that argued an environmental review of a planned construction project in Utah was too broad. Dozens of energy billionaires stand to benefit, like Anschutz Exploration Corporation leader Philip Anschutz and Energy Transfer LP founders Kelcy Warren and Ray Davis, who are worth $16.9 billion, $7.2 billion and $3.7 billion, respectively. As AI chatbots become more trusted with high-stakes jobs like helping to diagnose medical patients or screening loan applications, they're also making more mistakes,—which means assessing a model's performance is more crucial than ever. The once-buzzy data-labeling startup Snorkel AI is shifting gears to help enterprises create evaluation systems and datasets to test their AI models, raising $100 million at a $1.3 billion valuation. Despite repeated promises of an imminent launch, President Donald Trump's Gold Card visa—which would give wealthy investors U.S. residency and an expedited path to citizenship—would require Congress to change immigration laws, a process that could take months or years. And furthermore, while Trump has suggested the administration could raise trillions selling the cards, the math just doesn't add up, according to one expert: To afford the visa, someone would have to be worth over $100 million, and there are fewer than 30,000 centimillionaires in the entire world, more than a third of whom are American. A federal judge will indefinitely block the Trump Administration's ban on Harvard University's enrollment of foreign students, amid the ongoing feud between the university and federal government. In a shift from the Department of Homeland Security's initial announcement, which stated the ban would take effect immediately, the administration told Harvard ahead of the court hearing that it had 30 days to show why the school should not be barred from enrolling international students. Real Madrid forward Vinícius Forbes' latest ranking of the World's Most Valuable Soccer Teams, Spain's Real Madrid once again takes the crown, worth an estimated $6.75 billion after becoming the first soccer team to cross $1 billion in annual revenue during the 2023-24 season. Together, the 30 most valuable soccer teams are worth more than $72 billion, or an average of $2.4 billion, up 5% from last year. Michigan Potash & Salt founder Ted Pagano jamel toppin for forbes Michigan is sitting on a motherlode of potash, a mineral which is the main ingredient in agricultural fertilizer. The U.S. uses 5.3 million tons annually and imports 95% of it, mostly from Canada. Ted Pagano's Michigan Potash & Salt Company is on the cusp of closing on $1.8 billion of financing for a new mine, including a $1.3 billion loan from the Department of Energy and $500 million in equity being arranged by JPMorgan and Goldman Sachs. If all goes well, the mine will be churning out 1 million tons per year of potash (worth $350 million) and 1.3 million tons of salt (worth $80 million) by the end of the decade. With a resource base proven to be 130 million tons, the company could keep that up for a century or more—and make Pagano, who owns 65%, very rich. Even now his stake is worth at least $300 million. To extract the potash, Pagano will use a form of 'in-situ,' or solution mining. He'll drill 8,000-foot-deep wells in pairs. One is the injection well, down which Michigan Potash will send hot water to dissolve potash and salt in place. The second is the production well; the solution travels up that well to the processing plant for separation and drying. The water is reclaimed, heated and sent back down the hole. From the surface the mine will hardly be noticeable and should be eligible for green tax credits. 'There's no hair on this project that we're ashamed of,' says chief operating officer Aric Glasser. In all, Forbes estimates that costs should come to about $140 per ton; potash sells for about $350 a ton today. And agricultural giant ADM has already agreed to buy nearly all of Pagano's yearly potash production. WHY IT MATTERS 'This story shows how even in a giant, oligopoly-controlled industry like fertilizer, an individual entrepreneur like Ted Pagano—in the right place at the right time—can generate huge value for himself and for the country,' says Forbes senior editor Christopher Helman. 'This matters now because there are many other critical minerals of which the U.S. needs to develop secure domestic supplies. Hopefully Pagano's story can inspire more entrepreneurs to take on the challenge.' MORE The $800 Million Rare Earths Portfolio Of Australia's Richest Woman References to DEI in the corporate reports of top companies took a sharp dive this year, according to analysis by Gravity Research. As President Donald Trump has waged a war on DEI, many companies have dropped or reframed their diversity initiatives: 72%: The drop in references to diversity, including 'DEI' and 'racial diversity,' in the reports of major corporations between 2024 and 2025, per the study 87%: The increase in usage of the word 'belonging' between 2023 and 2024 as a 'safer' alternative to DEI, though mentions of the word then declined 47% between 2024 and 2025 'Speaks volumes to the current political environment': said Joanna Piacenza, vice president of thought leadership at Gravity Research No matter the reason, if you were seeking a promotion that didn't pan out, you can still create your own opportunities for leadership development in your current role. Look at previous performance reviews to figure out what skills you need to work on, and collaborate with your manager to restructure your role for stretch assignments. And if you're looking for an opportunity to manage people, start by managing a project or asking your boss if you can take something off their plate. Scientists have created a 'smart' dental floss that doesn't just clean your teeth, but also gauges what about your health? A. Blood pressure B. Presence of cavities C. Stress levels D. Recent drug use Check your answer. Thanks for reading! This edition of Forbes Daily was edited by Sarah Whitmire and Chris Dobstaff.
Yahoo
33 minutes ago
- Yahoo
Feds could eye Indiana's Camp Atterbury as potential site for ICE detainees amid capacity strain
Photo by Sgt. Joshua Syberg/Indiana National Guard Federal officials could be eying Indiana's Camp Atterbury as a temporary holding site for immigrant detainees as nationwide deportation efforts continue — and detention demands grow. While no official decision has been announced, the U.S. Department of Homeland Security (DHS) confirmed to the Indiana Capital Chronicle on Thursday that the agency is actively 'exploring all options' to meet current and future detention needs. The statement comes amid a push by President Donald Trump's administration to stage the 'largest deportation operation in American history,' vowing to deport millions of people. 'U.S. Immigration and Customs Enforcement's enhanced enforcement operations and routine daily operations have resulted in a significant number of arrests of criminal aliens that require greater detention capacity in Indiana,' the Department of Homeland Security (DHS) said in a statement. 'While we cannot confirm individual pre-decisional conversations, we can confirm that ICE is exploring all options to meet its current and future detention requirements.' So far, however, the Indiana National Guard 'has no tasking or request' from federal authorities, a spokesperson told the Capital Chronicle. The federally owned facility is licensed to and operated by the Indiana National Guard. It offers a variety of training ranges, live-fire venues, managed airspace with air-to-ground firing capabilities and an LVC simulation and exercise center. For now, DHS officials have declined to provide a timeline or identify specific sites under consideration. Camp Atterbury, located about 30 miles south of Indianapolis, has previously been used for large-scale federal operations. Most recently, in 2021, the facility temporarily housed thousands of Afghan refugees evacuated during the U.S. military withdrawal from Afghanistan. Feds to wind down certain Indiana naturalization ceremonies, block on-site voter registration During Operation Allies Welcome, the base accommodated over 7,000 Afghan evacuees in 82 lodging buildings across six neighborhoods, complete with dining facilities and medical centers. The infrastructure includes dorm-style housing for families and open bay barracks for individuals, all equipped with heating, air conditioning and plumbing. Camp Atterbury wouldn't be the first military or state-owned site proposed to be repurposed by federal officials for immigration-related operations. Most recently, Fort Bliss in Texas was identified as a potential deportation hub, with plans to hold thousands of detainees in massive tents on the Army base. The site could serve as the model for a dozen other holding facilities on military bases nationwide. A lack of detention space could be a reason for ICE to tap Camp Atterbury and other locations. The newest data released last week by DHS showed a drop in the number of immigrants in detention across the country for the first time since January — from 49,184 on May 4 to 48,870 on May 18 — but the shift could be due to existing detention facilities reaching capacity. Congress allocated funds for 41,500 detention beds this year, almost 20% fewer than the current number of detainees. It's unclear exactly how many people are currently being held in Indiana. Numbers can fluctuate daily as detainees are released or moved, so specific data is difficult to track. Recent reporting by Mirror Indy revealed at least 400 ICE detainees being held at the Marion County Jail in Indianapolis. And the federal government is paying Marion County $75 per day for each person held. As of March 17, the Transactional Records Access Clearinghouse at Syracuse University reflected an average daily population of eight detainees at the Marion County Jail; and an average of 238 detainees at the Clay County Jail in Brazil, which is operated by the Clay County Sheriff's Department and began housing ICE detainees in 2013 under contract with the federal government. CONTACT US Using Camp Atterbury instead of local jails could save the federal government money. There are an estimated 11 million immigrants who are not legally authorized to live in the United States, according to the Migration Policy Institute, an independent, nonpartisan think tank. A separate report released Thursday by the Center for Migration Studies found the nationwide population of people without permanent legal status to be closer to 12.2 million. Indiana's unauthorized immigrant population was estimated to be around 102,000 as of 2019. During the 2025 legislative session, state lawmakers passed multiple measures to boost immigration enforcement and ensure local compliance with federal directives. That included House Enrolled Act 1393, which requires local law enforcement to notify federal immigration authorities about undocumented immigrants in custody. After sharp debate, a separate and stricter immigration proposal failed to pass, though. House Bill 1531 would have required local law enforcement officers to comply with federal detainer requests for undocumented immigrants. The bill would have also banned employers from hiring unauthorized residents. Though the bill passed out of the House on a 64-26 vote, it never got a hearing in the Senate. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
