Tag: business

If you are looking to exchange dollars into Won now is the time to do it because the strengthening dollar may not last long once the war with Iran is over:

South Korean won briefly slid past the 1,500-per-dollar level on Tuesday, marking its first breach of the psychologically important level since 2009, as the greenback surged in value amid the ongoing U.S.-Israel military operations against Iran.

The won fell to nearly 1,506 won against the dollar at around 12:05 a.m. Wednesday (Seoul time), some 30 minutes after the New York Stock Exchange opened. It later recovered to trade back below the 1,500 mark.

The Korean currency hit 1,500 against the dollar for the first time since March 2009 when the world was reeling from the global financial crisis. 

In March 2009, the Korean won tumbled, approaching the 1,600-won-per-dollar level.

Analysts said that the won’s plunge this week was driven by the dollar’s rally amid fears that the U.S.-Israel operation could escalate into a broader regional war that could last longer than expected.

Yonhap

You can read more at the link.

It looks like the Coupang data breach issue is far worse than originally suspected:

Choi Woo-hyuk, director general of the science ministry’s cybersecurity bureau, speaks during a press conference in Seoul on Feb. 10, 2026. (Yonhap)

A joint public-private probe into a major data breach case at the South Korean unit of U.S.-listed e-commerce giant Coupang Inc. has confirmed that over 33.6 million accounts have been exposed, the science ministry said Tuesday, suggesting the company may have sought to play down the incident by initially claiming only some 3,000 had been compromised.

The South Korean unit, Coupang Corp., also failed to promptly report the incident despite related regulations, according to the Ministry of Science and ICT.

“The science ministry concluded the incident as being a major breach case leading to a massive leak of information involving the country’s top online commerce platform,” Choi Woo-hyuk, director general of the ministry’s cybersecurity bureau, said during a press briefing.

Yonhap

You can read more at the link.

This is exactly the behavior Trump has been trying to create with his tariff policy. Would these automakers have increased sales of U.S. made cars and even import them to Japan without Trump’s pressure?:

Workers are seen assembling an Ioniq 5 vehicle at the Hyundai Motor Group Metaplant America in Ellabell, Georgia on March 27. [HYUNDAI MOTOR]

Toyota’s decision to resume sales of the Camry through reimporting comes two years after halting its domestic sales and is seen as an effort to improve trade relations with the United States. Trump has repeatedly expressed dissatisfaction with Japan’s trade surplus with the United States. 
  
Toyota Chairman Akio Toyoda announced a $10 billion investment plan in the United States last month and appeared at a car event wearing a red MAGA hat, signaling his continued outreach to the United States.

Honda and Nissan are also reportedly considering reimporting U.S.-built models. Honda may bring in its Ridgeline pickup truck, Passport SUV and some Acura-branded electric vehicle models, according to Japanese business daily Nikkei. Nissan is weighing reimports of its Altima midsize sedan, Murano SUV and Pathfinder SUV. 
  
For Korean carmakers, reimporting U.S.-made vehicles is less viable due to high labor costs, added logistics expenses and unfavorable currency exchange rates. Instead, they are focusing on ramping up production within the United States. 
  
Hyundai Motor Group aims to increase the local production share of vehicles sold in the U.S. market from the current 43 percent to 80 percent by 2030. It also plans to boost annual North American sales from 834,000 vehicles last year to 1.44 million by the end of the decade. 
  
In a recent interview with Automotive News, Hyundai COO Jose Muñoz said that the company’s goal is not only to raise local production to 80 percent but also to increase the share of local suppliers from 60 percent to 80 percent, outlining plans to target the midsize pickup truck, SUV and commercial vehicle segments — including electric vans and medium-duty trucks. 
  
Industry experts see Trump’s MAGA policy as a catalyst for a shift in global production strategies within the automotive sector.

Joong Ang Ilbo

You can read more at the link.

South Korea was pretty much forced to cut a deal with the Trump administration after the Japanese completed a deal just a week prior. They basically got the same trade deal as the Japanese:

U.S. President Donald Trump said Wednesday that his administration has agreed to lower “reciprocal” tariffs on South Korea to 15 percent from the proposed 25 percent in return for massive investments and market opening, and hold a summit with President Lee Jae Myung at the White House in two weeks.

Trump announced the deal with South Korea in a social media post, shortly after Seoul’s Finance Minister Koo Yun-cheol and other top negotiators met him in an effort to finalize an agreement before Friday, when the steep blanket tariffs are set to take effect unless a deal is reached.

“We have agreed to a Tariff for South Korea of 15%. America will not be charged a Tariff,” he wrote on Truth Social.

Under what he called a “full and complete” trade deal, Trump said South Korea will give the United States US$350 billion for investments “owned and controlled by the United States, and selected by myself.”

He claimed South Korea has agreed that it will be “completely” open to trade with the U.S., and that it will accept American products, including cars, trucks and agricultural goods.

The deal also includes South Korea’s agreement to purchase $100 billion of U.S. liquefied natural gas or other energy products, and invest a large sum of money for Seoul’s investment purposes, Trump said.

“This sum will be announced within the next two weeks when the President of South Korea, Lee Jae Myung, comes to the White House for a Bilateral Meeting,” he said.

Yonhap

You can read more at the link.

I guess we will see if this trip to Korea by Trump Jr. will lead to any breakthroughs in trade negotiations with the U.S.:

Donald Trump Jr., the eldest son of US President Donald Trump, arrived in Seoul on Tuesday for a meeting with around 20 business leaders from South Korean conglomerates, industry sources said.

The two-day trip by Trump Jr., his first to South Korea since his father’s inauguration in January, comes at the invitation of Shinsegae Group Chairman Chung Yong-jin.

Per sources, Trump Jr. arrived at Gimpo International Airport, western Seoul, in his private jet at around 6:25 p.m. Tuesday. It had been scheduled to touch down at 4:45 p.m. but there had been a slight delay before the departure.

Wearing a black cap and a long-sleeve shirt, Trump Jr. left the airport without speaking to the dozens of waiting South Korean reporters.

South Korean business circles asked Chung to facilitate Trump Jr.’s visit as a way to establish contact with the Trump administration, according to the sources.

Korea Herald

You can read more at the link.

I think this is where the political crisis has really impacted South Korea, which is the inability to effectively negotiate tariffs with the Trump administration because you don’t know who will be President week-to-week:

Industry Minister Ahn Duk-geun, right, speaks at the Korea Chamber of Commerce and Industry in Seoul, Thursday, during a meeting with businesspeople to discuss countermeasures against U.S. reciprocal tariffs. In the middle is Trade Minister Cheong In-kyo.

Korea has been hit with the highest reciprocal tariff rate among the 20 countries that have free trade agreements (FTAs) with the United States.

With it clear that Seoul had failed to persuade Washington to impose lower tariffs on Korean products compared to those from major exporters like Japan and the European Union, concerns are growing over Korea’s diplomatic approach and future trade negotiations with the U.S.

The White House announced on Wednesday (local time) that the U.S. will impose a 26 percent reciprocal tariff on Korea, while charging 24 percent on Japan and 20 percent on EU member states.

Korea Times

You can read more at the link.

It will not only be South Korean stocks dipping this week, but likely most of the world as well:

South Korean stocks fell 3 percent to a near two-month low Monday ahead of U.S. reciprocal tariffs set to be announced later this week amid the removal of a short selling ban. The local currency sharply fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) dropped 76.86 points to close at 2,481.12, marking the lowest closing since Feb. 3, when it finished at 2,453.95.

Trade volume was slim at 385.5 million shares worth 8.1 trillion won (US$5.5 billion), with losers sharply outnumbering winners 824 to 87.

Foreigners sold a net 1.5 trillion won worth of stocks, while institutions and individuals purchased a net 666.9 billion won and 789.9 billion won, respectively.

Analysts said investors were concerned that U.S. President Donald Trump’s reciprocal tariffs, slated for Wednesday (U.S. time), would trigger a global trade war. He also confirmed 25 percent tariffs on all imported cars set to take effect Thursday.

Yonhap

You can read more at the link.

It looks like Korea is learning how to get in the good graces of the Trump administration, invest in America:

Hyundai Motor Group Executive Chair Euisun Chung listens, as U.S. President Donald Trump delivers remarks at the White House, in Washington on March 24, 2025 in this photo released by Reuters.

South Korean conglomerate Hyundai Motor Group said Monday it will invest US$21 billion in the United States through 2028, as U.S. President Donald Trump is ramping up tariff pressure to boost domestic manufacturing.

The group’s Executive Chair Euisun Chung, alongside Trump and Louisiana Gov. Jeff Landry, made the announcement on the plan that includes an investment of $8.6 billion for the automotive sector, $6.1 billion for the steel industry, component parts and logistics, and $6.3 billion for future industry sectors and energy.

“Today, I am pleased to announce an additional $21 billion in new investment over the next four years — our largest U.S. investment ever. A key part of this commitment is our $6 billion investment to strengthen the U.S. supply chain (for) steel and parts for automobiles,” he said at the White House.

Yonhap

You can read more at the link.

Maybe these Korean firms need to be lobbying the Mexican government to start cracking down on fentynal smuggling and human trafficking along the border to get these tarriffs removed:

South Korea’s economy has come under direct impact as US President Donald Trump signed an executive order on Saturday imposing tariffs on Mexico, Canada and China, raising concerns about a prolonged global trade war.

Industry experts warned on Sunday that Korea, heavily dependent on exports, could face significant setbacks if Trump’s tariff war escalates. Major companies, including Samsung Electronics, have manufacturing plants in Mexico and additional trade restrictions could disrupt their supply chains and profitability.

Korean firms strategically expanded their production bases in Mexico after the first round of US trade sanctions against China under the previous Trump administration. Electronics giants such as Samsung and LG, as well as automaker Hyundai Motor Group, bolstered their investments, either expanding existing facilities or establishing new ones.

As a result, Korea’s investment in Mexico surged from $11 million in 2020 to $396 million in 2022.

Korea Herald

You can read more at the link.

Is it really taking advantage of America by producing a product in your own country and selling it to the U.S.? If making the product in the U.S. was cheaper than manufacturing it in Korea for example, these foreign companies would do so:

President Donald Trump’s nominee for commerce secretary accused South Korea and Japan on Wednesday of having “taken advantage of” America’s “good nature,” stressing the need to work together with the allies to bring their production to the United States.

Howard Lutnick, a preeminent businessman, made the remarks during a Senate confirmation hearing, pointing to steel products from Japan and appliances from South Korea, as he responded to a senator’s question over what he will do to foster an environment to encourage joint ventures with U.S. allies.

“Our great allies have taken advantage of our good nature, and they like steel in Japan and appliances in Korea … I mean, they’ve just taken advantage of us. It’s time for them to partner with us and bring that production back home,” Lutnick told the Senate Committee on Commerce, Science and Transportation.

Yonhap

You can read more at the link.