High-stakes talks, shaky exports, and a won on the edge—can Seoul hold the line?


South Korea is gearing up for critical trade negotiations in Washington this week, answering a formal request from the United States amid rising economic turbulence.


The meetings will take place during the IMF and World Bank spring gatherings, where Finance Minister Choi Sang-mok and Trade Minister Ahn Duk-geun will represent Seoul. On the U.S. side, Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent are expected to lead the conversation.


The main goal? Convince the U.S. to back off a looming 25% “reciprocal” tariff—first announced by former President Donald Trump and currently on pause. Seoul wants that tariff reduced or completely scrapped before it inflicts deeper damage on Korea’s already-fragile export sector.


The Korean Trade Ministry released the meeting schedule on Sunday, but kept the full agenda under wraps. Ahn departs for Washington on Wednesday.



📉 Central Bank Holds Rates—But Warns: Growth is in Trouble


Meanwhile, South Korea’s central bank (BOK) decided Thursday to keep its key interest rate steady at 2.75%, matching analyst expectations.


In its monetary statement, the bank said uncertainty was still too high—both domestically and globally—to make any big moves. While acknowledging recent stimulus efforts, the BOK also gave a stark warning:



“Growth will likely fall below our previous 1.5% forecast.”



That slowdown is being blamed on:

Sluggish exports

Weak household spending

  • Ongoing political instability

To counteract the slowdown, Korea unveiled a ₩12 trillion ($8.45B) emergency spending package earlier this month—targeting critical industries like semiconductors.


Still, the BOK isn’t ready to cut rates just yet. Officials say they’ll wait to see how both domestic policies and international trade tensions evolve before making a move.



💱 Won Swings Wild as Tariff Fears Shake Currency Markets


Adding to the pressure: Korea’s currency, the won, has been on a rollercoaster.


Since Trump’s controversial “liberation day” remarks on April 3, the won has whiplashed:

  • 📈 1,429.52 per USD (April 4)


    📉 1,487.30 per USD (April 9, a 16-year low)

  • 📈 1,411.39 per USD (April 16, highest since Dec 2022

The volatility is fueling concerns over a possible return of household debt crises if monetary conditions remain loose for too long.



🕰️ Seoul’s Strategy: Delay, Stabilize, and Buy Time


With national elections looming and global markets growing more unpredictable, South Korea is in damage control mode.


Finance Minister Choi told parliament this week:



“We want to delay the implementation of tariffs as long as possible.”

“Our focus is giving Korean businesses stability in a chaotic global market.”




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