Latest news with #SouthKorea
Washington Post
31 minutes ago
- Business
- Washington Post
South Korea's central bank cuts borrowing costs to nurse the sluggish economy
SEOUL, South Korea — 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.
Associated Press
36 minutes ago
- Business
- Associated Press
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.
The Independent
36 minutes ago
- Business
- The Independent
South Korea's central bank cuts borrowing costs to nurse the sluggish economy
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.
Reuters
40 minutes ago
- Business
- Reuters
South Koreans turn out in record numbers for early voting in presidential election
SEOUL, May 29 (Reuters) - South Koreans began turning out in record numbers for early voting on Thursday in the country's snap presidential polls set to take place next week, election commission data showed, as both of the leading candidates cast their ballots. The June 3 election comes after months of political turmoil and a power vacuum following the botched attempt by former leader Yoon Suk Yeol to impose martial law. The liberal Democratic Party's candidate Lee Jae-myung, the frontrunner in the polls before a blackout period banning opinion polls began on Wednesday, cast his ballot in Seoul. "In order to overcome the current crisis... and start again as a Korea of recovery and growth, please vote," Lee said after casting his ballot at a university district in the city. His comment came after the Bank of Korea cut interest rates on Thursday and slashed its 2025 growth forecast for Asia's fourth-largest economy to 0.8% from 1.5% previously. On Wednesday, Lee pledged to establish a new Ministry of Climate and Energy to "respond to the climate crisis", and expand and reorganise the Ministry of Gender Equality and Family to promote equal rights and deal with any reverse discrimination. Some 3,107,164 people, or 7.00% of total eligible voters, had voted as of around 11 a.m. (0200 GMT), according to National Election Commission data, the highest turnout for the equivalent period in a presidential poll and compared with 5.38% in the 2022 vote. South Korea has 44.39 million eligible voters and early voting is allowed on Thursday and Friday. The top three candidates based on the last published Gallup Korea poll before the blackout period put Lee at 49% public support, followed by his main conservative rival Kim Moon-soo of the People Power Party with 35% and another conservative candidate, the New Reform Party's Lee Jun-seok, on 11%. Kim and Lee Jun-seok also voted on Thursday. Kim had eroded what was a more than 20 percentage point gap with Lee Jae-myung at the start of the campaign on May 12, but has failed to convince Lee Jun-seok to drop out and back him to improve his chances.
Washington Post
an hour ago
- General
- Washington Post
A look at key events that triggered South Korea's snap presidential election
SEOUL, South Korea — After months of political turmoil, South Koreans head to the polls next week to elect a president to succeed disgraced former leader Yoon Suk Yeol, who was ousted from office over his ill-fated decision to impose martial law in December. Here is a timeline of events that led to Tuesday's tense snap election:
