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Lee hosts U.S., Chinese economic chiefs ahead of Trump-Xi summit
SEOUL, May 13 (AJP) - President Lee Jae Myung on Wednesday had back-to-back meetings with U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, who visited South Korea just a day before the scheduled U.S.-China summit in Beijing. According to the presidential office, Lee met He and Bessent separately on Wednesday morning. Following their meetings with the president, the two officials united at Incheon International Airport for last-minute fine-tuning ahead
May 13, 2026
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KDI bumps up 2026 growth estimate to 2.5%, chips drive half of upgrade
SEOUL, May 13 (AJP) -State think tank Korea Development Institute on Wednesday projected South Korea’s economy to grow at its fastest pace in three years at 2.5 percent this year, while inflation is expected to accelerate to 2.7 percent — a combination suggesting the economy may sidestep stagflation fears for now even as growth momentum is likely to cool next year alongside moderating chip demand. At the same time, the institute warned inflation risks were intensifying f
May 13, 2026
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U.S. appeals court revives Trump tariff, renewing uncertainty for Korean Inc.
SEOUL, May 13 (AJP) - A U.S. federal appeals court ruling temporarily reinstating the Trump administration’s 10 percent global tariff has created fresh uncertainty for South Korean exporters and the $350 billion investment commitment underpinning Seoul’s trade deal with Washington. The ruling came just days after a lower court declared the 10 percent global tariff unlawful. The U.S. Court of Appeals for the Federal Circuit issued the administrative stay Tuesday, accor
May 13, 2026
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South Korea outpaces peers in Q1 growth; structural risks persist
SEOUL, May 12 (AJP) — The South Korean economy was the best performer among major economies in the first quarter of this year, benefiting from a base effect from a contraction in the fourth quarter of last year and chip boom. South Korea's real gross domestic product (GDP) increased by 1.7 percent in the first quarter from the previous quarter - the highest growth rate among the 22 countries that have released first-quarter flash estimates as of Monday. This outper
May 12, 2026
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Seoul hints at fiscal expansion for H2 and 2027, sending bond yields to hike-cycle highs
SEOUL, May 12 (AJP) — President Lee Jae Myung on Tuesday openly challenged the long-held policy rationale for fiscal tightening to rein in South Korea’s highly leveraged economy, signaling a more expansionary fiscal stance for the second half of this year and 2026 as growth concerns deepen amid prolonged Middle East tensions. “This is a time for investment to bolster growth potential,” Lee said during an emergency cabinet meeting, ordering the government to
May 12, 2026
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Financial authorities to crack down on misuse of state-supported loans
SEOUL, May 11 (AJP) - Financial authorities will step up efforts to prevent some businesses from profiting by lending government-funded money to their subcontractors at excessively high interest rates. The Financial Services Commission (FSC) and the Fair Trade Commission (FTC) said on Monday that they will strengthen monitoring and review processes to crack down on improper business practices and other irregularities. They added that companies found engaging in these practices will
May 11, 2026
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Korea's inflation may soar to 3.7% if Gulf oil crisis persists: KDI
SEOUL, May 11 (AJP) — South Korea's inflation could run as high as 3.7 percent this year under the worst-case scenario of an energy shock from the Middle East crisis, according to state think tank Korea Development Institute on Monday. The KDI, which is due to announce its revised economic outlook on Wednesday, predicted a bump-up of between 1 and 1.6 percentage points from this year’s estimated inflation rate of 2.1 percent. The forecast, however, excludes po
May 11, 2026
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S. Korea to distribute 2.25 million movie discount coupons to boost film industry
SEOUL, May 8 (AJP) - In an effort to boost the local film industry, South Korea will begin distributing 2.25 million movie discount coupons next week, the Ministry of Culture, Sports and Tourism and the Korean Film Council said Friday. The coupons will allow moviegoers to watch films for about 8,000 won to 9,000 won, a significant discount from the regular 14,000 won to 15,000 won ticket price. The coupon program is part of a 461.4 billion won ($314 million) supplementary budget
May 8, 2026
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Chip boom feeds record C/A surplus streak in March, overseas stock invest eases
SEOUL, May 08 (AJP) -The black in South Korea's current-account balance stretched to new record high of $37.33 billion in March and $73.78 billion for the first three-month period, both more than quadrupled from a year-ago period in line with double-digit growth in exports that more than offset gain in imports from higher U.S. dollar and energy cost amid a war outbreak in the Middle East. Despite the record surplus and exports surge streak, overwhelming demand for oversea stoc
May 8, 2026
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UPDATE: Korea's inflation hits 21-month high, markets rally on
*Updated with additional information and market response SEOUL, May 6 (AJP) — South Korea’s inflation accelerated to a 21-month high in April as a monthlong blockade of the Strait of Hormuz drove up imported fuel costs and price pressure from gas pumps to dining tables. According to data released by the Ministry of Data and Statistics (MDAS) on Wednesday, the consumer price index (CPI) rose 0.5 percent from March and 2.6 percent from a year earlier, up from 2.2 pe
May 6, 2026
