[Morning Briefing] Kim Yong-beom "Some progress in Korea-US talks"…New York market closes lower

◆South Korea and the United States held final-stage talks for about two hours…"Discussed the remaining issues"

Kim Yong-beom, director of policy at the Presidential Office, and Kim Jeong-gwan, minister of trade, industry and energy, met for about two hours on the 22nd (local time) at the U.S. Commerce Department headquarters in Washington, D.C. with Commerce Secretary Howard Lutnick for final-stage negotiations to reach a trade agreement. After meeting with Secretary Lutnick, Director Kim told reporters, "We talked a lot about the remaining issues" and "there was some progress." He said that the remaining issues were one or two and "not very many," and added, "We need to discuss more." When asked, "Can this be seen as the final stage of negotiations?" he replied, "It's not the final stage, and negotiations aren't over until they're over." He did not mention what the remaining issues are or what progress was made on them.

◆Monetary Policy Board meets today…Rate likely to be held for third consecutive time amid housing and exchange rate concerns

The Bank of Korea's Monetary Policy Board will decide the current policy rate, which stands at an annual 2.5%, at its monetary policy meeting today, the 23rd. With a third consecutive rate hold seen as the most likely outcome, Bank of Korea Governor Lee Chang-yong said at a hearing of the National Assembly's Planning and Finance Committee on the 20th, "From the Bank's standpoint, we do not want to increase liquidity further and play a role in stoking the real estate market." Recent volatile won-dollar exchange rate movements amid uncertainty over U.S. tariff negotiations are also adding weight against rate cuts.

◆Three major U.S. indices close lower in New York

The three major U.S. stock indices closed lower. On the 22nd, based on U.S. Eastern Time, the Dow Jones Industrial Average at the New York Stock Exchange fell 0.71% from the previous close. The Standard & Poor's 500 index fell 0.53% and the Nasdaq Composite fell 0.93%. A sell-off occurred after the U.S. government was reported to be considering measures to broadly restrict exports of U.S. software-based products targeting China.

◆U.S. announces additional sanctions on Russia's energy sector…"Must immediately move toward a ceasefire in Ukraine"

The U.S. Trump administration announced additional sanctions on Russia on the 22nd local time to increase pressure on Russia, which has been lukewarm toward negotiations to end the war in Ukraine. The Treasury Department's Office of Foreign Assets Control (OFAC) said that "it will increase pressure on Russia's energy sector," and designated two major Russian oil companies, 'Rosneft Oil Company' and 'Lukoil,' and their subsidiaries as targets of the sanctions. The Treasury said these firms were designated because they have operated in the energy sector of the Russian Federation's economy, and that all entities in which these firms directly or indirectly hold a 50% or greater stake will have their assets frozen.

◆Parliament holds audits in 11 standing committees today

The National Assembly will conduct audits in 11 standing committees on the 23rd, including the Legislation and Judiciary Committee and the Public Administration and Security Committee. The Legislation and Judiciary Committee plans to hold audits targeting 11 prosecutors' offices located in the Seoul metropolitan area and Gangwon Province, including the Seoul High Prosecutors' Office, Suwon High Prosecutors' Office, Seoul Central District Prosecutors' Office, Incheon District Prosecutors' Office, and Suwon District Prosecutors' Office. At the Public Administration and Security Committee's audit of Seoul and others, a dispute over responsibility for real estate is expected. The Committee on Climate, Energy, Environment and Labor will, for the first time since energy policy responsibilities were transferred due to government reorganization, hold hearings on energy issues with the Korea Energy Agency, Korea Electric Power Corporation, Korea Hydro & Nuclear Power, and Korea District Heating Corporation. The National Defense Committee will hold audits of the Air Force Headquarters and the Navy Headquarters, and the Culture, Sports and Tourism Committee will hold hearings on the Game Rating and Administration Committee, the Korea Creative Content Agency, and the Korean Film Council, among others.

Sujin Choi, Hankyung.com reporter naive@hankyung.com