South Korea will meet with the United States in Washington this week to hold trade talks requested by the U.S., according to Reuters.
The meetings will take place during the spring gatherings of the IMF and World Bank, and come as tensions around tariffs, exports, and currency volatility continue to build pressure on Korea’s economy.
Finance Minister Choi Sang-mok and Trade Minister Ahn Duk-geun are set to lead the Korean delegation. They’ll hold consultations with Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent. The Korean Trade Ministry released the schedule on Sunday.
Choi and Ahn are traveling to push back against the 25% “reciprocal” tariff announced by President Donald Trump. That tariff was paused temporarily, but Seoul wants it reduced or scrapped completely before it drags the country’s fragile exports any deeper. The statement didn’t give any full agenda or confirm what else would be discussed. Ahn is leaving for Washington on Wednesday.
South Korea’s central bank freezes interest rates, warns growth will fall below forecast
South Korea’s central bank, the Bank of Korea (BOK), kept its key policy rate unchanged at 2.75% on Thursday. The bank said it needed more time to observe domestic and global changes, especially with tariffs shifting and stimulus efforts kicking in. This decision matched the prediction from a recent Reuters economist poll.
In its monetary statement, the BOK said it was facing high uncertainty and couldn’t make any clear calls on the outlook yet. The bank also warned that economic growth will probably fall below the 1.5% forecast it made in February. The expected drop is tied to slowing exports, weak household demand, and ongoing political instability.
On April 15, Korea rolled out a 12 trillion won ($8.45 billion) emergency budget. It included increased support for the semiconductor sector, one of the country’s most critical industries. But even with that boost, the central bank said it would stick to its rate cut stance, though it wouldn’t commit to any timing. That decision would be based on both domestic policy shifts and external trade conditions.
The BOK also said it was being cautious about exchange rate swings and the possible return of household debt problems if conditions stay loose for too long. Korea’s currency, the won, has been unstable since Trump’s “liberation day” remarks on April 3. The currency strengthened to 1,429.52 per dollar on April 4, then crashed to 1,487.3 by April 9, marking a 16-year low. A week later, on April 16, the won strengthened again to 1,411.39—its highest point since December 2024.
With the election coming and U.S. tariffs still a threat, Korea’s leadership is trying to buy time. Choi told parliament on Tuesday that the country would attempt to delay any implementation of the tariffs as long as possible. “We want to delay the implementation of tariffs as long as possible,” Choi said. He added that the goal was to give Korean businesses more stability in a chaotic global market.
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