🇰🇷 [Friday, May 9, 2025] South Korea Economic & Market Briefing

Navigating a Complex Landscape: Trade Optimism Meets Domestic Uncertainty

Kyodo News++1환율 교환 사이트+1AP News

---

📊 Market Summary

• KOSPI: 2,577.27 (-0.09%)
• KOSDAQ: 722.52 (-0.97%)
• USD/KRW Exchange Rate: 1,401.90 KRW (-0.24%)

The KOSPI index experienced a slight decline, ending a three-day winning streak, as investors engaged in profit-taking, particularly in battery and banking sectors. The KOSDAQ saw a more pronounced drop, influenced by adjustments in tech stocks. The Korean won strengthened modestly against the U.S. dollar, reflecting cautious optimism in the currency markets.Yonhap News Agency+1Yonhap News Agency+1

---

📰 Key Developments

1. 🇺🇸🇬🇧 U.S.-UK Trade Agreement Sparks Global Optimism

The announcement of a new trade agreement between the United States and the United Kingdom has injected optimism into global markets. The deal includes reduced tariffs on U.K. automobiles and increased access for U.S. agricultural products in the U.K. market. This development has bolstered investor confidence, contributing to gains in major indices like the S&P 500 and the Dow Jones Industrial Average. ajc+2WPLG+2WJXT+2

2. 🏦 Bank of Korea Signals Potential Interest Rate Cut

Minutes from the Bank of Korea's April policy meeting suggest that an interest rate cut may be imminent, as economic challenges intensify. The central bank aims to preemptively address risks posed by aggressive U.S. tariff policies and a slowing domestic economy. The next monetary policy review is scheduled for May 29, where a rate cut decision may be finalized. Reuters

3. 📈 Current Account Surplus Continues for 23rd Month

South Korea recorded a current account surplus of $9.14 billion in March, marking the 23rd consecutive month of surplus. The increase is attributed to rising exports and a favorable balance of trade, indicating resilience in the country's external economic position despite global uncertainties. Yonhap News Agency+2코리아중앙데일리+2신화망+2

4. ⚖️ Czech Court Halts $18 Billion Nuclear Deal

A Czech court has temporarily suspended an $18 billion agreement for South Korea's Korea Hydro and Nuclear Power to build two nuclear reactors in the Czech Republic. The suspension follows a legal challenge by French competitor EDF. South Korean officials remain optimistic that the deal will proceed after legal issues are resolved. AP News

5. 🗳️ Presidential Candidate Lee Criticizes U.S. Tariff Policies

Lee Jae-myung, the leading candidate in South Korea's upcoming presidential election, has criticized U.S. tariff policies, warning that they could lead to Washington's isolation. He advocates for South Korea to coordinate with other nations to counteract these policies and urges domestic businesses to align with government strategies rather than seeking individual exemptions. Reuters

6. 💰 Government Plans Increased Support for Semiconductor Industry

The South Korean government plans to boost aid for the semiconductor sector to approximately $23 billion, up from a previously pledged $19 billion. This includes additional low-interest loans and is part of a broader supplementary budget aimed at mitigating the impact of U.S. tariffs and supporting industries affected by recent challenges. WSJ

7. 🌐 APEC Finance Meeting Discusses Regional Economic Stability

At the APEC Finance Ministers' Meeting held in Seoul, discussions focused on enhancing regional economic stability and cooperation. Topics included strategies to counteract global economic uncertainties and the importance of maintaining open trade policies among member economies.

---

🔮 Outlook & Upcoming Events

• May 10: Federal Reserve Chair Jerome Powell is scheduled to speak, potentially providing insights into future U.S. monetary policy directions.
• Mid-May: Resumption of U.S.-China trade negotiations, which could influence global trade dynamics and market sentiments.
• May 29: Bank of Korea's monetary policy meeting, where an interest rate decision is anticipated.코리아중앙데일리

Investors should monitor these events closely, as they may have significant implications for both global and South Korean markets.

---

💡 Conclusion & Investment Strategy

The South Korean market is currently navigating a complex environment characterized by global trade developments, domestic political shifts, and economic policy adjustments. While the U.S.-UK trade agreement has provided a boost to global market confidence, ongoing concerns about U.S. tariff policies and their impact on South Korea's economy persist.

Investment Considerations:

• Diversification: Given the uncertainties, diversifying investments across sectors and geographies can help mitigate risks.
• Focus on Resilient Sectors: Industries such as technology and semiconductors, which are receiving government support, may offer growth opportunities.
• Monitor Policy Developments: Stay informed about domestic and international policy changes, especially those related to trade and monetary policy, as they can significantly impact market dynamics.

---