Seoul: Finance Minister Choi Sang-mok said Wednesday that South Korea's economy, already facing structural challenges, is being further weighed down by what he referred to as the "tariff storm," pledging swift support measures.
According to Yonhap News Agency, Choi highlighted the compounded difficulties faced by the South Korean economy, including intensifying global industrial and technological competition and delayed domestic recovery. His remarks came during a meeting of economy-related ministers, where he underscored the urgency of addressing the new challenges posed by tariff threats.
Last week, U.S. President Donald Trump announced a 25 percent reciprocal tariff on South Korean goods, which was scheduled to take effect Wednesday (U.S. time). This move is part of a broader protectionist agenda aimed at reducing trade deficits and boosting domestic manufacturing. Additionally, there are reports indicating that the U.S. is preparing to impose tariffs on semiconductor and pharmaceutical imports in the near future, following recent duties on steel, aluminum, and auto imports.
Choi emphasized the government's commitment to taking bold and swift actions in response to this unprecedented trade crisis. He also called for bipartisan support for the swift passage of a government proposal for a 10 trillion-won (US$6.8 billion) supplementary budget.
The supplementary budget was proposed to address the "most pressing issues," largely caused by recent wildfires that devastated the country's southeastern regions. Choi described the extra budget as the minimum required to tackle these urgent challenges.
"This supplementary budget is more critical than ever, and its timely passage is essential," Choi said. He urged the National Assembly to expedite discussions and approval to ensure that the necessary resources are available to mitigate the impact of these economic challenges.