"Tariff Shock" for Korean, Chinese, and Japanese Companies: "Sales Down, But Investment Unchanged" [3-Minute Brief]

[At a Glance]
1. Korea Economic Cooperation Association surveys 303 manufacturing firms in Korea, China, and Japan
2. Semiconductor production rises 13.3%... Positive growth for two consecutive months
3. 100 days into Trump’s presidency, stark contrast in investment results between individual and foreign investors

MARKET INDEX : Year to date

○ All three major U.S. stock indexes closed higher.

○ Tech stocks rose on the back of strong earnings from Microsoft and Meta.

○ Despite pressure on the Federal Reserve to cut rates, U.S. Treasury yields increased.

Top 3 NEWS

■ Korean, Chinese, and Japanese companies: "Average sales to drop by 4-7% next year... Investment plans remain unchanged"

○ Korea's machinery and industrial equipment sectors are hit the hardest.

○ Companies are focusing more on reducing costs and expenses than on expanding local production in the U.S.

○ Government action is needed, such as tax cuts and fiscal support.

■ Sluggish economy... Production up 0.9%, but domestic demand remains weak

○ Semiconductor production saw its largest increase in 19 months, while service sector output fell by 0.3%.

○ Retail sales, led by wholesale and retail sectors, dropped by 0.3%, but rose by 1.5% year-on-year.

○ "Strong production trend and internal and external uncertainties"... Both facility investment and construction orders recorded negative growth.

■ 100 days into Trump’s presidency: Individual investors lose, foreigners gain

○ Individual investors concentrated their net purchases on tariff-vulnerable stocks.

○ Korean investors in U.S. stocks lost 16 trillion won due to heavy buying of Tesla.

○ Foreign investors bought defense and tariff-insulated stocks.

Graphic News: Additional tax revenue collected through March totals 8.4 trillion won... Corporate tax up by 6.5 trillion won

○ Ministry of Economy and Finance March national tax revenue report

○ Corporate tax revenue surged this year due to improved corporate performance

○ Ongoing concerns over tax revenue outlook, affected by Trump-era tariff hikes and other factors

the Chart: Hanwha Group stocks, once strong performers, hit the brakes

○ News of Korea Development Bank selling its stake in Hanwha Ocean sent group stocks lower together.

○ Hanwha Ocean fell by more than 12%, with further correction seen as inevitable for now.

○ Hanwha Aerospace's first-quarter results are expected to provide a rebound momentum.

Today's Key Schedule

○ Domestic

08:00 Korea Consumer Price Index (MoM) (April)

○ Overseas

16:15 Spain Manufacturing PMI (April)

16:45 Italy Manufacturing PMI (April)

17:00 European Central Bank Monthly Report

18:00 Eurozone Consumer Price Index (YoY) (April)

21:30 U.S. Average Hourly Earnings (MoM) (April)

21:30 U.S. Nonfarm Payrolls (April)

21:30 U.S. Unemployment Rate (April)

◇ Lunch & Evening Commute Weather

○ Lowest temperature: 9°C (▼3°C) | Highest temperature: 20°C (▲2°C)
○ Precipitation probability: 0% in the morning | 30% in the afternoon
○ Fine dust: Moderate in the morning | Good in the afternoon

All you need in 3 minutes: essential, cost-effective economic news. Published daily at 8 a.m.

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