🇰🇷 April 21, 2025 – Korea Market & Economy Briefing

“Cautious Gains Amid Trade Tensions… All Eyes on Policy Response and Investment Strategy”

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📈 Market Closing Summary

• KOSPI: 2,488.42 (+0.20%)
• KOSDAQ: 715.45 (-0.32%)
• USD/KRW Exchange Rate: ₩1,418.40 (-0.38%)

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📰 Key News & Highlights

1. Government Announces ₩12.2 Trillion Supplementary Budget
The Korean government has unveiled a ₩12.2 trillion (~$8.6 billion) supplementary budget to address trade risks, foster AI industry growth, and support small businesses. This proactive move comes in light of intensifying global trade protectionism and recent natural disasters. (Source: koreapro.org)

 

2. Exports Down 5.2% in Early April
According to the Korea Customs Service, exports from April 1–20 declined 5.2% year-on-year. Notably, shipments to the U.S. plunged 14.3%, signaling the direct impact of recent tariff policies. (Source: Reuters)

 

3. Surge in “Made-in-Korea” Mislabeling Exports
The Korean Customs Service reports a sharp rise in attempts to falsely label Chinese goods as Korean to bypass U.S. tariffs. In Q1 2025 alone, the estimated scale of such violations reached ₩295 billion.
(Source: Reuters)

 

4. Acting President Han Duk-soo: “US Trade Talks Will Not Be Easy”
Acting President Han expressed caution ahead of the high-level trade negotiations with the U.S. scheduled for April 24, saying, "It won’t be easy." The talks aim to address tariff policies and seek mutually agreeable solutions. (Source: Reuters)

 

5. Growing Regional Disparities in Real Estate Market
In Q1 2025, Korea’s real estate market is seeing increasing polarization. While Seoul’s Gangnam area shows rising demand fueled by liquidity, other regions are stagnating or declining. (Source: MK.co.kr)

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💡 Investment Strategy Insights

• Watch Trade-Sensitive Sectors: The supplementary budget targets trade-related risks. Sectors such as logistics, export finance, and industrial parts may benefit.
• Explore AI and Tech Growth Stocks: With AI listed as a strategic focus in the budget, opportunities in AI hardware, software, and data infrastructure may arise.
• Real Estate-Linked Investments Require Caution: Given the growing disparity in property trends by region, it's important to assess real estate or REITs with careful attention to geography.

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📝 Closing Thoughts

As trade friction continues and policy responses unfold, markets are likely to remain sensitive. This week, staying informed and disciplined in your investment strategy will be key.
Wishing you successful and strategic investing ahead!