Bank of Korea: "US Reciprocal Tariffs Likely to Increase Financial Market Volatility"

"24-Hour Monitoring System, Timely Response Promised"

Yoo Sang-dae, Deputy Governor of the Bank of Korea, said on the 3rd regarding the U.S. government's announcement of reciprocal tariffs, "There is a high possibility of increased volatility in the financial markets."

Yoo Sang-dae, Deputy Governor of the Bank of Korea, is speaking at the joint press briefing on the plan to promote the CBDC usability test held on the afternoon of the 4th at the Bank of Korea Integrated Annex in Jung-gu, Seoul. Photo by Joint Press Corps

Deputy Governor Yoo held a market situation review meeting that morning and said, "The tariff rates by country were high, and the target countries were broad, which was stronger than the market expected."

Deputy Governor Yoo stated, "Through a 24-hour monitoring system linked with overseas offices, we will closely monitor the development of related risk factors and the domestic financial and foreign exchange market situation, and respond promptly if necessary." He added, "We will also continue to examine the changes in global trade conditions due to U.S. tariff policies, the impact on major countries' growth, inflation, and monetary policies, as well as the ripple effects on the domestic economy."

Overnight, the U.S. government announced an executive order imposing a basic tariff of 10% on all trading countries, along with reciprocal tariffs on individual countries with large trade surpluses. South Korea's rate is 25%, and China (34%), the EU (20%), Vietnam (46%), Taiwan (32%), Japan (24%), India (26%), Thailand (36%), Switzerland (31%), etc.