Economic Policy
Finance Minister signals extra vigilance on foreign exchange volatility
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Finance Minister Koo Yun-cheol said Friday the government is taking extra vigilance over recent volatility in the foreign exchange market.
The Bank of Korea faces mounting pressure for monetary tightening after a spike in global oil prices triggered by Middle East conflict. Markets increasingly expect the benchmark rate to reach 3 percent by year-end.
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Samsung Electronics and its largest union failed to reach an agreement in government-mediated talks on May 18, heightening concerns over a planned strike.
China’s top Communist Party journal, Qiushi, has reaffirmed the push to rebalance trade, stating that a worsening global environment of rising protectionism and geopolitical tensions adds urgency to shifting from an “unsustainable” export-driven growth model. The commentary notes profound changes in conditions shaping China’s trade balance, with deep-seated weaknesses in the foreign trade sector remaining pronounced.
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A Brazilian economist has criticized the recent increase in import taxes, arguing that historical experience shows this policy fails to generate investments, innovation, or productivity. In an article in Folha de S.Paulo, the author highlights flaws in the official justification and negative impacts on competitiveness.