Korea not waver even under American pressure, keeping the economy stable

International News: While small economic movements are seen worldwide, South Korea has taken a thoughtful decision amidst current global pressure. Despite the US warning to impose heavy tariffs (import duty), the central bank of South Korea did not make any changes in its monetary policy. Bank of Korea has decided to maintain the interest rate at 2.75% as before.

Strategy of stability amidst the danger of tariff

Former US President Donald Trump has announced a tariff of up to 25% on several countries including South Korea. Even though it has been stopped for 3 months at the moment, the threat of tariff is still hovering. In this situation, the Korean government has intensified talks with Washington to avoid this economic pressure.

Pressure on currency, market uncertainty

The Korean currency 'von' is constantly under pressure and instability in international markets is seen. Despite this, the Bank of Korea decided to keep the interest rates stable while avoiding any haste. In a survey conducted by Reuters, most economists expected a similar decision.

Government plan: Budget will get support

The South Korean government has planned an additional budget of 12 trillion von (about $ 8.4 billion) to strengthen the economy. It is expected that this budget can reach 20 trillion vons by the end of the year. This can increase GDP from 0.2% to 0.4%.

Political instability before election

Presidential elections are going to be held in the country on June 3. Earlier, the political atmosphere has been unstable - the conditions like impeachment and martial law have been seen on the former President. In such a situation, the government is taking a lot of vigilance on the economic front so that the public's trust will remain.

What can happen next?

Economic experts believe that if the US tariff policies increase further pressure in the global market, South Korea may cut interest rates next month. For the moment, the country has taken a clever decision to keep the situation balanced.