Part 7/9:
The trade environment has been particularly challenging for South Korea, given the U.S.'s imposition of substantial tariffs on steel imports and automobiles, which constitute a third of their exports to the U.S. As negotiations unfold in Washington, South Korea's leaders are advocating for a balanced resolution emphasizing diplomatic engagements over retaliation.
However, these trade tensions have already shown adverse effects; the IMF has downgraded South Korea's growth forecast from 2% to 1%. Financial stress is further evident in the form of worsening currency valuation and rising household debt, leading the Bank of Korea to contemplate interest rate cuts to mitigate the impact.