Overview

• The Bank of Korea kept its benchmark interest rate at 2.75%, prioritizing currency stability and economic growth amid U.S. trade tariffs.
• U.S. reciprocal tariffs of 25% on South Korean exports, including autos and steel, have been paused for three months, but remain a significant risk to the economy.
• Finance Minister Choi Sang-mok announced plans to negotiate tariff implementation delays with the U.S. and draft a supplementary 12 trillion won budget to bolster economic resilience.
• South Korea's inflation stood at 2.1% in March, slightly above the central bank's 2% target, while the 2025 growth forecast was revised down to 1.5% earlier this year.
• A snap presidential election is set for June 3 following the impeachment of President Yoon Suk Yeol, adding political uncertainty to ongoing economic challenges.