Exchange Rates and Interest Rates Sway with Trump...Korean Economy in Turmoil [3-Minute Brief]

Published 21 Jan.2025 08:00(KST)

[At a Glance]
1. Dollar Strength and Rising Interest Rates May Continue After Trump's Inauguration
2. Real Economic Impact of Martial Law to Be Reflected in This Week's GDP and Industry Trends
3. Uncertainty Outweighs Strong Dollar...Resident Foreign Currency Deposits Increase for First Time in Three Months

MARKET INDEX

Exchange Rates and Interest Rates Sway with Trump...Korean Economy in Turmoil [3-Minute Brief]

○ Inauguration ceremony in Washington, DC at 2:00 a.m. KST on the 21st
○ Make sure to take advantage of housing finance deductions during year-end tax settlement, also known as the "13th month's salary"
○ Despite the continued rise of the KRW-USD exchange rate, uncertainty prevails

TOP 3 NEWS

■ Trump Inauguration: Exchange Rates and Interest Rates Volatile

○ The dollar's strength and rising interest rates may continue even after Trump's inauguration
○ Trump's tariff policies are fueling concerns about inflation and strengthening the dollar
○ As the Fed slows the pace of base rate cuts, market interest rates could rise further

■ Real Economic Impact of Martial Law to Be Reflected in This Week's GDP and Industry Trends

○ Real Gross Domestic Product (GDP) and private consumption
○ December industrial activity trends and retail sales need to be checked
○ The specific impact and scale of psychological contraction on consumption and the economy must be assessed

■ Uncertainty Outweighs Strong Dollar...Resident Foreign Currency Deposits Increase for First Time in Three Months

○ In December last year, resident foreign currency deposits increased by $2.87 billion
○ Despite the continued rise of the KRW-USD exchange rate, uncertainty prevails
○ Export and import companies secure reserve funds...increase led mainly by corporate deposits

the Chart: Woori Bank to Invest 11.7 Billion KRW in Building Generative AI Infrastructure

○ Developing a Gen-AI platform and planning and developing related services
○ From subscription product consultations to investment portfolio proposals
○ Project budget is about 11.7 billion KRW...scheduled for completion in Q3

Money-Making Law

■ Reducing Medical Expenses Not Covered by Indemnity Insurance Is "Not Deceptive"

○ The cost of ocular ultrasound covered by insurance
○ The act of sharply raising and changing medical fees
○ Determined "not to be a deceptive act against the insurer"
☞View Article: https://www.asiae.co.kr/article/lawtimes/2025012106563351613

■ Publisher Did Not Announce Union's Collective Bargaining Request...Court Rules "Unfair Labor Practice"

○ Failure to announce labor union's bargaining request is illegal
○ "Even a single labor union has an obligation to make an announcement"
○ Court recognizes refusal of collective bargaining as unlawful
☞View Article: https://www.asiae.co.kr/article/lawtimes/2025012107005472875

■ Blocking Sneaky "Surprise Deposits"

○ Guarding against deposits made right before sentencing to seek leniency
○ From the 17th, it is mandatory to hear the victim's opinion
○ Expanding victims' participation rights and strengthening protection
☞View Article: https://www.asiae.co.kr/article/lawtimes/2025012107042487089

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

Terms in the News: Shopping in One Minute, "Shortping"

○ Boom in short-form content production across domestic industries

○ Noted for advantages such as time efficiency, intuitiveness, and ease of purchase

○ To target Generation Z, maximum length should be kept to 15 minutes

Today's Key Schedule

○Domestic

KOSDAQ EZN Net subscription on the 21st, offering price 7,000 KRW

KOSDAQ PIE subscription on the 21st, offering price 5,000 KRW

○Overseas

00:30 Canada Business Outlook Survey (Bank)

06:00 Korea Producer Price Index (MoM) (December)

19:00 Eurozone Finance Ministers' Meeting

◇Lunch & Commuting Weather

○ Lowest temperature 0℃ (0℃) ｜ Highest temperature: 8℃ (0℃)
○ Precipitation probability: 10% in the morning ｜ 10% in the afternoon
○ Fine dust: Bad in the morning ｜ Bad in the afternoon

Just 3 minutes for the essential, value-for-time economic news. Published daily at 8 a.m.