Bank of Korea: Even if an agreement is reached, it is expected that US tariffs will still cause "significant" impact.

The Bank of Korea said on Thursday that even after reaching a trade agreement, the expected impact of US tariffs on the South Korean economy would still be "significant." The Bank of Korea stated in a report, "Although the negotiations have achieved relatively positive results, the average tariff rate imposed by the US on our country has increased significantly from zero tariffs under the previous Korea-US Free Trade Agreement to around 15%." The Bank of Korea added, "Therefore, it is expected to face a significant impact on the domestic economy of South Korea, which is highly dependent on exports to the US." The Bank of Korea estimated that the negative impact of US tariff policy on South Korea's economic growth is expected to be 0.45 percentage points this year and 0.60 percentage points next year. This impact is reflected in its annual growth forecasts: South Korea's economic growth rate is expected to be 0.9% in 2025 and 1.6% in 2026.