In response to US tariffs and the aftermath of President Yoon Suk Yeol’s simple declaration of martial law next year, South Korea’s central banks on Tuesday cut interest rates and its monthly growth forecast.
Gross domestic product is projected to increase by 1.5 percent in 2025, according to a Bank of Korea established, along from its initial estimate of 1.9 percent.
The standard interest level would also be lowered “from the latest 3.00 percentage to 2.75 percent”, the official said.
In the final three months of 2024, Yoon’s martial law walk had a negative impact on consumer confidence and domestic demand, so the economy expanded less than expected.
There is also growing concern about US President Donald Trump’s hard-as-as-a-thon business procedures, which have seen him levy a variety of taxes on some of his nation’s biggest trading lovers since taking office in January.
Steel and aluminum goods are subject to 25 % taxes, among them.
He even warned last week that he would levy taxes “in the neighborhood of 25 %” on imported cars and a similar or higher rate on electronics and medicine.
Samsung and SK Hynix, two worldwide chip manufacturers, are based in South Korea, and it is the fourth-largest material supplier to the United States last month.
