Trump Tariff Pause Leads to Sharp Currency Drop [3-Minute Brief]

[At a Glance]
① Won-Dollar Exchange Rate Drops to 1,440, Lowest in a Month
② Last Year’s Average Daily Foreign Exchange Trading Volume: $68.96 Billion, Up 4.6%
③ Full-Scale 'Expulsion' of Zombie Companies Begins... Reviewing the Criteria

MARKET INDEX : Year to date

○ Trump’s second term starts with gains on the first trading day

○ Market relief as new tariff measures are put on hold

○ Inflation concerns ease, leading to declines in government bond yields and the dollar

Top3 NEWS

■ Will the high exchange rate hurdle be overcome? Lowest in a month amid possible Trump tariff delays

○ No new tariffs expected on Trump’s first day in office
○ Won-dollar exchange rate falls to the lowest level in a month, around 1440 won
○ Foreign exchange authorities’ vigilance eases concerns over further sharp rises

■ Korean investors in US stocks also hedging currency... Average daily foreign exchange trading hits record high

○ Last year’s average daily foreign exchange trading volume was $68.96 billion, up 4.6%
○ Increase in export-import scale, domestic and overseas securities investment, and currency hedging demand
○ Highest level since the 2008 statistical revision

■ Zombie companies dragging down Korean stock market face full-scale 'expulsion'... Strengthening criteria and streamlining procedures

○ No expulsions in 10 years... Strengthening criteria with low effectiveness first
○ Strengthening delisting criteria while simplifying procedures
○ Improving systems to protect investors and prevent greater investor losses

Graphic News: "They quit after receiving an average of 500 million to a maximum of 1 billion won"... Over 2,000 bank employees packing up

○ More than 2,000 voluntary retirement applicants at the five major commercial banks

○ Shinhan Bank, which expanded the target to employees in their 30s, doubled compared to last year

○ Accelerated branch closures due to digital transformation leading to workforce slimming

the Chart: Tangerine prices surge 22%... Producer prices rise for two consecutive months

○ Preliminary producer price index for December 2024 announced

○ Domestic supply prices rise for two consecutive months due to high exchange rates

○ "Leads to production cost burdens and consumer price pressures"

Person in the News: "The back seat is fine too"... TikTok CEO, the 'savior', attends Trump’s inauguration

Zhu Shouzu, CEO of TikTok, is seated in the Rotunda Hall of the U.S. Capitol, where the inauguration ceremony of President-elect Donald Trump was held on the 20th (local time). Photo by EPA and Yonhap News

○ Trump delays TikTok ban law by 3 months

○ "It has become an essential messenger for the younger generation"

○ Survival depends on approval of US-China equity split negotiations

Today’s Key Schedule

○Domestic

22nd KOSDAQ LG CNS subscription public offering price 61,900 won

○Overseas

06:00 South Korea Consumer Confidence Index (January)

13:00 Malaysia Consumer Price Index (YoY) (December)

22:30 Commodity Price Index (MoM) (December)

◇ Lunch & Commute Weather

○ Lowest temperature 0℃(0℃) ｜ Highest temperature: 7℃(0℃)
○ Precipitation probability 30% in the morning｜30% in the afternoon
○ Fine dust level Bad in the morning｜Bad in the afternoon

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

This content was produced with the assistance of AI translation services.