Bank of Korea Governor: "Trump Tariffs Have Greater Economic Impact Than Martial Law"

Interview with Lee Chang-yong, Financial Times

Lee Chang-yong, the Governor of the Bank of Korea, stated that the tariffs promised by U.S. President-elect Donald Trump are a greater concern than the political turmoil caused by martial law. In an interview with the Financial Times (FT) on the 6th, Governor Lee said, "There is a lot of uncertainty," adding, "However, external factors are currently giving us much greater uncertainty than domestic ones." He specifically mentioned Trump's tariff policy as "one of the main reasons we have downgraded our growth forecasts for this year and next." He further explained, "Although export growth was good this year, we have downgraded our export growth (forecast) for two reasons," noting that "one is the possibility of tariffs." Governor Lee acknowledged that important structural reforms in the Korean economy and financial markets might be delayed due to the aftermath of the martial law situation. However, he assessed that the economic impact of the domestic political crisis would be "limited" compared to the intensified competition from China and the impact of Trump's tariffs on Korean exporters. Regarding the impact of the martial law situation on the domestic financial market, he said, "It did not last long and was relatively quiet." He also praised the swift and comprehensive preventive measures that quickly calmed and stabilized the financial market. Reporter Noh Jeong-dong, Hankyung.com dong2@hankyung.com