This week, the Korea Pro team unpacks how South Korea is navigating a convergence of economic strain, corporate turbulence and diplomatic urgency.

The episode begins with the Bank of Korea’s decision to hold its base interest rate at 2.5%, even as Seoul’s housing market accelerates and household debt surges. The team then dives into U.S. President Donald Trump’s announcement of a 25% tariff on all South Korean imports beginning Aug. 1.

A minor opposition lawmaker also alleged that the Yoon Suk-yeol administration illegally transferred military equipment to Ukraine under a lease agreement, sidestepping legal oversight. If substantiated, the case could constrain President Lee Jae-myung’s ability to expand non-lethal aid or strengthen NATO ties.

Next, the team turns to Samsung Electronics’ steep Q2 earnings drop. With operating profit down, the team discusses what this means for South Korea’s tech leadership and macroeconomic stability.

The team covers plans for a three-way meeting among U.S., South Korean and Japanese senior diplomats on the sidelines of the upcoming ASEAN Regional Forum in Malaysia. If finalized, this would mark the first high-level trilateral meeting since Lee took office.

Concurrently, ROK national security adviser Wi Sung-lac has proposed a “comprehensive package deal” that links tariffs, investment and security in one negotiation framework. Wi also suggested an early summit between Lee and Trump — a move aimed at de-escalating tensions and reinforcing South Korea’s role as a strategic partner.

In the week ahead, the team looks to the next round of confirmation hearings for Lee’s Cabinet nominees and South Korea’s upcoming Constitution Day, as the new administration continues to shape its policy direction amid rising domestic and international challenges.

About the podcast: The Korea Pro Podcast is a weekly 15-minute conversation hosted by Korea Risk Group Executive Director Jeongmin Kim, Editor John Lee and correspondent Joon Ha Park, diving deep into the most pressing stories shaping South Korea — and dissecting the most complicated ones for professionals monitoring ROK politics, diplomacy, culture, society and technology. Uploaded every Friday.

This episode was recorded on Wednesday, July 10, 2025. 

Audio edited by Gaby Magnuson