Latest news with #BankofKorea
Reuters
a day ago
- Business
- Reuters
South Korea exports to rise in July ahead of US tariff deadline: Reuters poll
SEOUL, July 30 (Reuters) - South Korea's exports likely climbed in July for a second straight month on robust chip sales and frontloading ahead of a U.S. tariff deadline, a Reuters poll showed on Wednesday. Exports from Asia's fourth-largest economy are forecast to have risen 4.6% from a year earlier, according to a median estimate from a survey of 22 economists. That would be slightly faster than the 4.3% increase in June and mark the biggest gain since December 2024. Data for the first 20 days of the month showed exports fell 2.2% as shipments to the U.S. and China - its biggest trading partners - declined, although semiconductor exports jumped 16.5%. U.S. President Donald Trump has threatened South Korea with 25% tariffs, and officials are scrambling to clinch a trade deal before an August 1 deadline. Trade rival Japan last week signed an agreement lowering its tariffs to 15%, adding to pressure on Seoul to make a deal that is at least no worse. The second half of the year is set to be much tougher for the country's exporters. "It is inevitable there will be an overall shock to U.S.-bound exports, because the possibility is high that the tariff rate on South Korea will at least be 15% or higher even after trade negotiations," said Chun Kyu-yeon, an economist at Hana Securities. The Bank of Korea said last week that U.S. tariffs would start to weigh on exports from the third quarter. Robust tech exports in the second quarter helped the trade-reliant economy grow at its fastest pace in more than a year. The median estimate for July trade balance stood at a surplus of $5.36 billion, narrower than June's $9.08 billion, which was the biggest since September 2018. Imports were projected to have increased 2.0% after gaining 3.3% in June. South Korea - the first major exporting economy to report trade figures each month - is scheduled to release data for July on Friday, August 1, at 9 a.m. (0000 GMT).
New Straits Times
2 days ago
- Business
- New Straits Times
Bank of Korea board members saw more interest rate cuts necessary
SEOUL: Board members of South Korea's central bank said there was a need to lower interest rates and cited US trade talks as a key factor to consider for the pace and timing of further cuts, at their latest meeting on July 10, minutes showed on Tuesday. The Bank of Korea kept its benchmark interest rate unchanged at 2.50 per cent at the meeting, but a majority of board members signalled another rate cut in the next three months and warned of "significant" economic uncertainty from US tariffs. "Uncertainty surrounding the future growth trajectory remains significantly high, particularly due to trade negotiations with the United States," one member said, arguing the board should maintain an accommodative policy stance to support weak growth. One member concurred by saying "it is time to consider an additional rate cut", while another member said "the need for base rate cuts still remains". Board members cited developments in the country's trade talks with the US as a key factor for the future policy path, as South Korean officials scramble to try to clinch a deal that reduces tariffs. South Korean Finance Minister Koo Yun-cheol said on Tuesday he would seek a mutually beneficial trade deal when he meets US Treasury Secretary Scott Bessent for talks this week, just days before an Aug 1 deadline expires to avoid punishing tariffs.
CNA
2 days ago
- Business
- CNA
Bank of Korea board members saw more interest rate cuts necessary, minutes show
SEOUL :Board members of South Korea's central bank said there was a need to lower interest rates, citing downward economic pressure from U.S. tariffs, at their latest meeting on July 10, minutes showed on Tuesday. The Bank of Korea kept its benchmark interest rate unchanged at 2.50 per cent at the meeting, but a majority of board members signalled another rate cut in the next three months and warned of "significant" economic uncertainty from U.S. tariffs.
Reuters
2 days ago
- Business
- Reuters
Bank of Korea board members saw more interest rate cuts necessary, minutes show
SEOUL, July 29 (Reuters) - Board members of South Korea's central bank said there was a need to lower interest rates, citing downward economic pressure from U.S. tariffs, at their latest meeting on July 10, minutes showed on Tuesday. The Bank of Korea kept its benchmark interest rate unchanged at 2.50% at the meeting, but a majority of board members signalled another rate cut in the next three months and warned of "significant" economic uncertainty from U.S. tariffs.
Hans India
2 days ago
- Business
- Hans India
Daily forex turnover hits record high in Q2 in S. Korea on foreign investment
Seoul: Daily foreign exchange (FX) trading by banks in South Korea reached an all-time high in the second quarter on increasing foreign investment in domestic securities and exchange rate volatility, central bank data showed on Tuesday. The daily FX turnover, including trading of derivatives, came to an average of US$82.16 billion during the April-June period, up 12.9 percent from the first quarter, according to the data from the Bank of Korea (BOK). It marked the largest quarterly figure since the central bank began compiling relevant data under the current statistical standards in 2008, reports Yonhap news agency. "The increase was due to exchange rate volatility and increased trading by foreign investors in domestic securities," a BOK official said. "Since the extension of foreign exchange market trading hours in July last year, trading volume has steadily increased," he added. The daily average turnover for FX derivatives advanced 10.2 percent from the previous quarter to $49.39 billion in the second quarter, while the average daily spot FX trading volume surged 17.3 percent on-quarter to $32.77 billion, the data showed. Meanwhile, foreign investors purchased the highest value of South Korean stocks in 15 months in June, central bank data showed this month, driven by eased concerns over U.S. trade policies and optimism about the new Seoul government's market-supportive measures. Offshore investors bought a net US$2.27 billion worth of local stocks last month, marking a second consecutive month of net buying, according to the data from the Bank of Korea (BOK). The June figure marked the highest level since March 2024, when foreigners purchased a net $3.84 billion worth of local stocks. Foreign investors also net purchased $2.81 billion of Korean bonds in June, extending their buying streak to the fifth month.
