Korea Bank governor says commercial tensions are “bad for everyone”

Korea Governor Rai Chang said that tensions of US President Donald Trump’s tariffs are not just a counter -wind for South Korea, but it is “bad for everyone.”

“I really hope that this trade tension will be dissipated, because it is bad for everyone,” said Korea Governor Rai Chang Young late on Wednesday.

Speaking to CNBC at the Spring meetings of the International Monetary Fund for the world, Rei said commercial tensions caused the winds of the South Korean economy, and negative risks have increased to economic growth.

“We will be directly affected by the American definitions (f) indirectly by their tariffs to other countries, for example, the production of semiconductor in Vietnam, the production of cars and electronics in Mexico, and the production of our batteries in Canada.”

Rhee’s comments came a day before South Korea The gross domestic product was contracted for the first time Since the fourth quarter of 2020, with pre -figures revealed that the country’s gross domestic product has reduced 0.1 % on an annual basis in the first quarter.

The GDP also comes as the South team’s heads to the United States for commercial talks, with President Han Daco Saying He expects talks with the United States to pave the way for a result that benefits from both sides.

The Ministry of Trade, Industry and Energy in South Korea He said on Thursday that the agenda To meet with the United States has not yet been completed.

The central bank ruler said that the country’s growth will be affected by political instability in the first quarter, but he expressed his hope that the uncertainty would be “behind us” after the presidential elections for South Korea on June 3.

The trials of isolation of former President Yoon Sok and Prime Minister Han Daco continued in the first quarter, as the Constitutional Court struck Han’s accountability in March and his return as a prosecutor, before Yun removal from the office On April 4.

Earlier this month, the Korea Bank kept the standard policy price by 2.75 % at its meeting in April, saying, “It is necessary to remain careful about the impact of increasing exchange rate volatility.”

Trump’s ads, “Liberation Day”, in the middle of April 3, led to the victory of South Korea in the following days.

When asked why the central bank did not consider a preventive reduction to support growth, he attributed the decision of foreign exchange fluctuations, adding that the bank believes it is better to keep the rate and check the data received before deciding to move.

“If you make an analogy, we now feel as if you are entering a dark tunnel, then in this case, it is better to slow down a little, until the eye (adapts).”