BOK Governor "Tariff Negotiations, Labor Disputes, Industrial Restructuring are Downside Risks to the Economy"

Bank of Korea Governor Lee Chang-yong holds a press conference (Seoul=Yonhap News) Bank of Korea Governor Lee Chang-yong is holding a press conference after the Monetary Policy Committee meeting at the Bank of Korea in Jung-gu, Seoul on the 28th. 2025.8.28 [Photo Joint Press Corps] photo@yna.co.kr

Bank of Korea Governor Lee Chang-yong said on the 28th, regarding downside risks to the economy, "We are very concerned about the possibility of tariff negotiations with the US being reignited."

At a press conference held after the Monetary Policy Committee decided to freeze the benchmark interest rate at 2.5% on the same day, Governor Lee said, "Even if negotiations are maintained, there is a risk of labor disputes escalating if automakers increase production in the US to avoid US tariffs."

He added, "Disputes may arise in the process of relocating factories overseas," and expressed concern that "greater damage could be incurred if political and economic coordination is not achieved."

Governor Lee also stated, "The semiconductor cycle is continuing," and added, "If semiconductor exports do well, it will be an upside factor for the economy."

Regarding other downside factors, Governor Lee mentioned, "Another downside factor is the restructuring of petrochemicals and other industries." He explained, "Restructuring is planned in industries with intense competition with China, and if various disputes emerge, the economy could be affected in the short term." Yonhap News