Ministry of Economy and Finance Holds Market Review Meeting
Continuous Monitoring of Financial and Real Economy Trends
The United States has released a letter outlining its plan to impose a 25% reciprocal tariff on South Korea starting August 1. In response, the government announced that it will continue to monitor the impact on the country's financial and real economy.
On July 8, the Ministry of Economy and Finance held an internal market review meeting presided over by First Vice Minister Lee Hyungil, who is serving as Acting Minister. The meeting reviewed trends related to U.S. tariffs and their market impact, and discussed response measures. Relevant departments within the ministry and the International Finance Center participated in the meeting.
Previously, the U.S. government notified 14 countries, including South Korea, of reciprocal tariff rates. For South Korean products, the 25% reciprocal tariff rate will be maintained, with the effective date extended from July 9 to August 1. The 25% tariff rate is the same as the rate announced by President Donald Trump in April for South Korea.
Following the U.S. government's tariff letter, U.S. stock prices fell slightly and the dollar strengthened, indicating increased volatility in the international financial markets.
The government stated, "Depending on how the U.S. tariff imposition progresses, volatility in domestic and international financial markets could increase. Therefore, we plan to respond with heightened vigilance."
The government added, "While closely monitoring U.S. tariff-related trends and the impact on the financial and real economy in close cooperation with relevant agencies, if the market shows excessive volatility disconnected from our economic fundamentals, we will take immediate and decisive action according to contingency plans tailored to each situation."
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