Stock Market Brightens as Lee Jaemyung Administration Launches [3-Minute Brief]

① KOSPI jumps over 2% intraday as new administration launches, hitting all-time high
② US implements steel and aluminum tariff hike from 25% to 50%
③ May inflation rises 1.9%... Vegetable and oil prices drop, but processed foods and dining out surge

MARKET INDEX

○Employment shock and slowdown in the service sector... The Dow declines after five consecutive sessions of gains
○Mixed close near flat... S&P and Nasdaq up
○Trump urges, "Powell, cut rates immediately"

TOP 3 NEWS

■ New administration’s launch sparks a “celebratory rally” as KOSPI breaks through its all-time high, settling above 2,750

○Positive factors include economic stimulus and resolving the Korea Discount
○Recommendations for holding shares in holding companies, securities, and banks... Small and mid-cap stocks also drawing attention
○If valuations improve, KOSPI expected to enter the 3,000 era

■ "25% was already burdensome... 50% is overwhelming" Steel industry in turmoil over Trump tariffs

○Tariffs took effect just five days after announcement, leaving no time to prepare countermeasures
○Industry expects government negotiations in response to what it calls an abnormal measure
○Government and Korea Iron & Steel Association form a "one team" to respond with strategies for key items

■ Inflation drops to 1% range for the first time in five months due to falling oil prices, but processed food prices remain high

○International oil prices fell 24.2% year-on-year
○Vegetable prices down 5.4%?the largest drop in 37 months
○Prices for processed foods and dining out continue to rise at a high rate

Graphic News: Lee Jaemyung’s financial policies focus on financial support for small business owners, youth, and the working class

○The Lee Jaemyung administration is pushing to reduce financial burdens for vulnerable groups
○Banks to lower interest rates to ease financial burdens for the working class
○Asset growth for young people and stronger protection for financial consumers also expected

Money-Making Law

■ Former lawyer Lee Jaemyung elected as the 21st President?What changes for the legal profession?

○Separation of investigation and prosecution, strengthening of the Corruption Investigation Office for High-ranking Officials, and more
○Plans to amend the Constitution and revise the Martial Law Act
○Attention on the implementation of judicial and prosecutorial reform pledges
☞Read the article:  https://www.asiae.co.kr/article/lawtimes/2025060416101220440

■ 15 laws remain unchanged despite rulings of unconstitutionality?9 have already passed the deadline

○In the context of presidential impeachment and an early election
○The National Assembly focused on the political schedule rather than legislation
○"Legislative vacuum... Violation of citizens' basic rights"
☞Read the article:  https://www.asiae.co.kr/article/lawtimes/2025060416140349683

■ Major law firms cold toward regional university graduates?"Let's move to Seoul" trend grows

○77% of new hires at major law firms are from SKY universities
○Number of regional law school students retaking the bar exam is increasing
○Calls for institutionalizing diversity hiring
☞Read the article:  https://www.asiae.co.kr/article/lawtimes/2025060416184783597

※ The “Money-Making Law” section, a content partnership between Asia Economy and Law Times, is published every Tuesday and Thursday.

Key Schedules Today

○Domestic

06:00 Korea’s foreign exchange reserves (USD) (May)

08:00 Korea GDP (QoQ) (Q1)

○International

10:30 Australia trade balance (April)

10:45 China Caixin Services PMI (May)

15:00 Germany factory orders (MoM) (April)

21:45 European Central Bank press conference

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