Already struggling to sell... Luxury Industry Also Shocked by Tariff War [3-Minute Brief]

① Concerns Over Luxury Market Contraction Amid Tariff War
② US Small Businesses Hit Hard by 'Reciprocal Tariffs'
③ Non-Performing Loans at Top 5 Commercial Banks Surge by Over 1 Trillion KRW in One Year

MARKET INDEX

○ US exempts phones and PCs from reciprocal tariffs
○ Trump reverses statement from "not a delay" to "flexibility"

○ Also hints at possible exemption of auto parts tariffs

TOP 3 NEWS

■ Trump’s 'Tariff Bomb' Puts Luxury Industry on Red Alert Again This Year

○ Impact of Trump-led trade war
○ Tariff rates changed three times in one week... "Poison to consumer sentiment"
○ LVMH fashion and leather products expected to see 1% organic sales decline in Q1

■ US Small Businesses Suffer 'Cost Bomb' from China’s 145% Tariffs

○ Trump’s tariff policy increases costs for domestic companies
○ Warning of "significant damage to small businesses"
○ Some companies considering relocating production bases to Vietnam, India, etc. to avoid high tariffs

■ Rising Defaults Among Small Businesses Lead to Increased Bank Non-Performing Loans

○ Non-performing loans at top 5 commercial banks increased by over 1 trillion KRW in one year
○ Delinquency rate highest since 2017
○ Banks raising lending standards and selling non-performing loans to manage soundness

Graphic News: Shinhan and Woori Strengthen Internal Control Effectiveness… NongHyup and Hana Emphasize Internal Control Culture [Accountability Structure Dilemma]

○ Shinhan Bank focuses on digitalization of internal controls
○ Woori Bank strengthens personnel and systems
○ NongHyup and Hana emphasize establishing an internal control 'culture'

Law That Makes Money

■ 80 Million KRW Compensation for Traffic Accident Deaths… "Must Reflect Value of Life"

○ Objective damage amount standards established
○ Utilizing economics, psychology, neuroscience, etc.
○ Urgent need for new guidelines
☞Read article: https://www.asiae.co.kr/article/2025041416103238178

■ Top 10 Construction Companies Also Struggling… Focus on 'Direct Payment System' as Protection for Subcontractors

○ Reduces risk of payment collection, ensures stable project execution
○ 3 of top 10 construction companies have debt ratios exceeding 200%
○ Sharp cost increases after COVID-19 and Russia-Ukraine war
☞Read article: https://www.asiae.co.kr/article/2025041416222027153

■ Someone Took Our Company’s Domain? → Use 'Dispute Resolution System' Instead of Civil Litigation

○ "Simple and inexpensive but unknown to companies"
○ Mainly document-based process, conclusion within 2-3 months
○ Filed with Asia Domain Name Dispute Resolution Center (ADNDRC)
☞Read article: https://www.asiae.co.kr/article/2025041416275769198

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

Today’s Key Schedule

○ Domestic

08:55 Export and Import Amounts (YoY) (March)

08:55 Trade Balance (February)

12:00 M3 Money Supply (February)

○ Overseas

02:00 Speech by US Federal Reserve Governor Waller

07:00 Speech by US FOMC member Harker

08:01 UK Retail Consortium Retail Sales (YoY) (March)

15:00 Germany Wholesale Price Index (MoM) (March)

18:00 Germany ZEW Economic Sentiment Index (April)

21:30 US Import Price Index (MoM) (March)

◇ Lunch & Commute Weather

○ Lowest temperature 4℃(▲1℃) ｜ Highest temperature: 14℃(▲5℃)
○ Precipitation probability morning 20%｜afternoon 20%
○ Fine dust morning moderate｜afternoon moderate

OK in 3 minutes, essential time-efficient economic news. Published daily at 8 AM.