Trump Shouts "I Love Tariffs"… South Korea's Economy Reels [3-Minute Brief]

[At a Glance]
① Impact from Trump Tariffs and a Series of Downward Revisions to South Korea's Growth Outlook
② Diverging Opinions on Inflation
③ Financial Services Commission Announces Household Loan Trends for January 2025

MARKET INDEX

○ The three major U.S. stock indexes in New York closed mixed, remaining flat overall.

○ January CPI rose 3% year-on-year, exceeding expectations.

○ U.S. 10-year Treasury yield surged.

TOP 3 NEWS

■ Economic Sentiment Recovery Remains Uncertain Amid 'Trump Punch' and Low Growth Concerns

○ February news sentiment index at 94.87, below the long-term average of 100
○ Household and business sentiment indices remain below 100, indicating pessimism
○ Factors include negative impact from Trump tariffs and a series of downward revisions to South Korea's growth outlook

■ Diverging U.S. Inflation Outlooks

○ Summers: "This is the period with the highest likelihood of inflation rising in four years"
○ Signs of wage growth and a tightening labor market
○ Williams, President of the New York Fed: "Inflation is in a cooling phase, but it will take time to reach 2%"

■ Household Loans Down 900 Billion Won in January Compared to Previous Month... Second-Tier Mortgage Growth Slows

○ Financial Services Commission announces household loan trends for January 2025
○ Mortgage loans increased by 3.3 trillion won from the previous month
○ Growth in second-tier mortgage loans slowed

Graphic News: 80% of Senior Citizens' Assets Are in Real Estate... Why Home Reverse Mortgages Are Gaining Attention in a Super-Aged Society

○ Korea Housing Finance Corporation's 'Home Reverse Mortgage': "Live in your own home for life and receive monthly pension payments"

○ Simultaneously addresses both income stability and housing insecurity among the elderly

○ "There should be more options, such as products for properties with publicly announced values exceeding 1.2 billion won"

Law That Makes Money

■ Injured by a Ball at a Batting Cage: "70% of the Responsibility Lies with the Victim for Neglecting Safety"

○ Suffered an injury to the left eye during batting practice, resulting in impaired vision and visual field defects
○ The court found negligence at a 7:3 ratio, considering the possibility of such accidents and the speed of the ball
○ "It is reasonable to assume that the victim accepted the risk of accidental harm"

■ "Illegal Private Lending Reports Have Increased Fivefold in Four Years, but Sentencing Remains Unchanged"

○ Discussions underway on sentencing guidelines for violations of the Loan Business Act and Debt Collection Act
○ Even with aggravated punishment, the maximum sentences remain at 3 years and 6 months or 4 years
○ "Regulation is needed either through new punitive laws or by strengthening the Interest Rate Limitation Act"

■ Labor, Sexual Minorities, Refugees... Supporting the Socially Disadvantaged

○ 'Gonggam', the first public interest lawyers' group in Korea, established in 2004
○ Aims to improve human rights for the socially disadvantaged and minorities; no legal fees charged
○ Minority rights and the Itaewon disaster were key topics at the 'Human Rights Law Camp'

※ 'Law That Makes Money', a content partnership between Asia Economy and The Law Times, is published every Tuesday and Thursday.

Today's Key Schedule

○ Domestic

February 12: Dongbang Medical lists on KOSDAQ, final IPO price set at 10,500 won

February 12: Winners subscription on KOSDAQ, expected IPO price 7,500~8,500 won

February 12: LK Chem subscription on KOSDAQ, expected IPO price 18,000~21,000 won

○ Overseas

00:00 U.S. Federal Reserve Chair Powell's testimony

00:30 U.S. crude oil inventories

00:30 U.S. Cushing crude oil inventories

02:00 Speech by Bundesbank President Nagel (Germany)

03:00 U.S. 10-year Treasury auction

16:00 Germany Consumer Price Index (MoM) (January)

22:30 U.S. initial jobless claims

◇ Lunchtime & Evening Commute Weather

○ Lowest temperature: -5℃ (▼5℃) ｜ Highest temperature: 5℃ (▲1℃)
○ Precipitation probability: 0% in the morning ｜ 20% in the afternoon
○ Fine dust: Good in the morning ｜ Moderate in the afternoon

All the essential, cost-effective economic news you need-in just 3 minutes. Published every day at 8:00 AM.