February 12 (Wednesday) News Headline

《Economy》

"Trump's Reciprocal Tariffs Will Hit South America, Africa, and South Asia the Hardest"

• Trump reiterates reciprocal tariff imposition within two days.

• Emerging and underdeveloped countries to suffer the most.

• Advanced economies like Europe have similar tariff rates to the U.S., except for cars and agricultural products.

• Trump’s tariffs will essentially impact all countries.

Luxury Goods Remain Untouched by Recession… Price Hikes for Cartier, Prada, and More

• Prada plans to raise prices by about 5% tomorrow.

• "It's hard to find a brand that hasn't increased prices."

Trump Targets Automobiles and Semiconductors… A Full-Blown Attack on Korea’s Key Industries

• Tariffs announced following steel duties.

• South Korea’s automobile exports totaled $70.7 billion last year, with $34.7 billion going to the U.S.

• Semiconductor exports to the U.S. amounted to $10.6 billion.

• Samsung and Hyundai face potential hits from tariff imposition.

KDI Forecasts South Korea’s Economic Growth at 1.6% This Year

• Further decline possible if trade disputes escalate.

• Revised down 0.4 percentage points from previous 2.0% projection.

• Martial law crisis and Trump’s "tariff bomb" cited as causes.

• A potential "low first half, high second half" scenario with 2.2% growth expected later in the year.

Duty-Free Store CEO Caught Smuggling Luxury Watches Worth ₩1.72 Billion

• Former HDC Shilla CEO sentenced to prison.

• Exploited loophole allowing unlimited duty-free purchases for foreigners.

• Used borrowed identities and employees to smuggle goods.

• Authorities vow strict penalties for those involved.

《Finance》

Soaring Gold Prices Boost Returns on Gold Funds and ETFs

• Gold fund returns up 13.12% YTD—highest among thematic funds.

• ₩145.3 billion inflows since the start of the year.

• ETFs also strong, with ACE KRX Gold Spot rising 20%.

• Analysts predict a prolonged gold price rally.

Backlash Over Double Taxation on Pension Accounts... Government Faces Dilemma

• Proposal to allow tax deductions on losses from ISA funds.

• Tax deferral benefits expected to be abolished.

• Industry calls new accounting system unrealistic.

"Trump’s 2018 Tariff War Caused U.S. Stock Market Plunge"

• Trade war increased uncertainty and discouraged corporate investment.

• 2018 saw the first annual U.S. stock market decline since the financial crisis.

• "Congress unlikely to stop Trump… Only a market crash might."

International Banks Predict 3-4 Rate Cuts for Korea, 0-1 for the U.S.

• Prolonged political instability raises concerns over power vacuum.

• Korea expected to lower rates in February, May, August, and November.

• U.S. Fed’s rate cut expectations shrinking.

• Wider Korea-U.S. interest rate gap may drive up the won-dollar exchange rate.

Provincial Banks Hit Hard by Project Financing (PF) Crisis, Write Off ₩1 Trillion in Bad Debt

• Bad debt provisions eat into net profits.

• Struggles in managing financial soundness.

• Rising delinquency rates in real estate project financing increase burden.

《Corporations》

Samsung Electronics Reviewing 6th-Gen DRAM Redesign… Betting Big on HBM4

• Samsung to make a bold move with 6th-gen HBM4.

• Success hinges on 1c node HBM4 yield rate.

• Targeting 1c development by June; 1b redesign not planned.

• 4th-gen 1a DRAM redesign completed, ready for HBM production.

EcoPro Expects Gains from Trump’s 'Decoupling from China' and Weak Won

• ₩314.5 billion operating loss, but recovery anticipated in the first half.

• Lower raw material costs and a weak won reduce inventory valuation losses.

• China still dominates LFP battery performance.

• New precursor plant in Indonesia and cathode material plant in Hungary part of ‘de-China’ strategy.

E-Mart Reports ₩260.3 Billion in Real Operating Profit Despite Wage Costs

• Turnaround in E-Mart's performance.

• Profits stand at ₩260.3 billion excluding wage-related costs.

• SSG.com posts first-ever positive EBITDA.

• Starbucks Korea’s operator surpasses ₩3 trillion in revenue.

Hyundai Department Store Reports ₩284.2 Billion in Operating Profit, Introduces First Interim Dividend

• Department store business posts a 0.8% increase in operating profit, even after wage cost adjustments.

• Announces ₩1,400 per share dividend, with annual payouts exceeding ₩40 billion.

Korean Battery Makers’ Market Share Drops Below 20% as China Dominates

• Market share of Korea’s top three battery firms fell to 18.4% last year.

• Declining demand in key markets like Europe and North America.

• Chinese firms CATL and BYD now control 55.1% of the market.

《Real Estate》

Homeowners Barred from Lottery-Style Apartment Applications

• "Applications may drop by up to 60%."

• New system to prioritize non-homeowners and local residents.

• Implementation planned for the first half of the year.

• Stricter verification of household members to prevent fraudulent applications.

College-Area Studio Rents Continue to Climb… Most Expensive Area at ₩740,000

• Average monthly rent reaches ₩609,000, up 6.1% YoY.

• Average maintenance fees increase by 8.1% YoY to ₩78,000.

• Rents expected to rise further in August due to university demand.

• Highest rent hike recorded near Sungkyunkwan University, while Ewha University tops maintenance fee increases.

SH Corporation CEO: "Priority on Pre-Sold Housing for Newlyweds"

• Plans to supply 3,500 units this year, increasing to 4,000 annually from next year.

• "Addressing the most urgent issue at cost-level pricing."

Major Housing Markets See Zero New Sales in January Due to Overambitious Launches

• New apartment supply in metropolitan and 11 other regions dropped to zero last month.

• General pre-sales plummeted 60% MoM.

• Gyeonggi province saw zero new sales for the first time in 108 months.

Seoul Accelerates Redevelopment with Faster Permits and Grants

• More projects using city-backed cooperative establishment system.

• Areas like Changsin, Jeonnong, and Sillim to benefit this year.

• Shortened permit processing time and additional city grants attracting attention.

《Society》

Tax Authorities Target High-Priced Wedding, Childcare, and Education Services for Tax Evasion

• National Tax Service launches probe into excessive pricing and tax fraud.

• 46 businesses, including wedding planners, postpartum care centers, and English preschools, under investigation.

• Suspected tax evasion amounts to ₩2 trillion.

Why Was the Elementary School Teacher Unable to Stop the Suspect in the ‘Student Murder Case’ in Daejeon?

• The teacher was on medical leave for depression but returned after just 20 days.

• Education office: "No legal grounds to prevent their return."

• Teacher screening committee inactive for years.

Dating Violence on the Rise… Now Includes Threats, Confinement, and Sexual Assault

• Cases surged from 70,000 in 2022 to 88,000 last year.

• Legal experts call for inclusion in domestic violence laws.

Stricter Security at Constitutional Court Following Riot Plans

• 45 police units deployed.

• Acrylic barriers and order-maintenance lines set up on sidewalks and roads.

• Pedestrians required to show ID and state their purpose.

《International》

Trump’s Tariffs Cost Elon Musk $121 Trillion

• Tesla stock down 27% since December peak.

• Musk’s wealth shrinks from ₩648 trillion to ₩533 trillion.

Trump: "Spoke to Xi After Imposing Tariffs… Won’t Let Money Flow Out"

• "Massive tariffs on Mexican cars… 50%-100% duties for Canada under review."

• Calls for increased defense spending due to China and Russia.

White House: "25% Steel Tariffs on South Korea from March 12"

• Tariff exemption quota agreed in Trump’s first term likely to be revoked.

Musk vs. Altman: "I’ll Buy OpenAI" vs. "Sell X to Us"

• Musk offers $97.4 billion for OpenAI.

• Altman counters with an offer for Twitter.

Trump Considers Steel Tariff Exemption for Australia

• "Australia buys many U.S. planes."

Seoul Tribune (c)

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